An accounting entry that represents a decrease in assets or an increase in liabilities or equity.

In accounting, a debit refers to an entry made on the left side of a ledger or account to record an increase in an asset, an expense, or a decrease in a liability or equity. It represents the act of recording an outgoing transaction or reducing a credit balance. Debits are an essential part of the double-entry bookkeeping system, ensuring accurate record-keeping and maintaining the accounting equation. Understanding debits is crucial for small business owners to track expenses, analyze financial transactions, and maintain proper bookkeeping records.