Double-entry bookkeeping is an accounting method that records each financial transaction with equal debits and credits in two or more accounts, maintaining the fundamental accounting equation of assets equal liabilities plus equity. It ensures accuracy and integrity in financial record-keeping by providing a systematic framework for tracking and balancing transactions. Every transaction has two sides, with one account debited and another credited, ensuring that the accounting equation remains in balance. Double-entry bookkeeping facilitates accurate financial reporting, analysis, and auditing, enabling businesses to monitor cash flows, detect errors, and comply with regulatory requirements. It also supports the preparation of financial statements such as the balance sheet, income statement, and cash flow statement, providing stakeholders with comprehensive insights into a company's financial performance and position.