Accounting basics
Double-entry bookkeeping basics for small books
Double-entry bookkeeping is the discipline behind reliable accounting reports. Every posted event affects at least two accounts, and the total debits must equal the total credits.
Why entries have two sides
A sale does not only create revenue; it also increases cash or a client receivable. A bill payment does not only reduce cash; it also settles an expense or liability. Double entry forces the book to describe both sides of the event instead of keeping a loose list of money movements.
Journal, ledger, reports
The journal is the chronological record of entries. The ledger groups those entries by account. Reports summarize the ledger into views a human can use: trial balance, income statement, balance sheet, cash flow, and account detail.
The trial balance is a warning light
A trial balance lists account balances and checks that debits and credits still agree. It does not prove every entry is correct, but it catches a category of errors that spreadsheets often let through until the month is already messy.
How Ledvo uses it
Ledvo's posting flow rejects imbalanced entries. Its reports read from the posted ledger rather than from hand-maintained report cells. That means each report is a consequence of the book, not another place where numbers drift.