Understanding Debits and Credits: A Wellness Pro’s Guide to Double-Entry Accounting

As a wellness entrepreneur—whether you’re a yoga instructor, massage therapist, or holistic health coach—your time is best spent supporting your clients. But when it comes to managing your business finances, understanding a few basics can save you money and stress down the road. One of those foundational pieces? Debits and credits.

Let’s break it down in a way that actually makes sense.

What Is Double-Entry Accounting?

Double-entry accounting means that every financial transaction affects at least two accounts—a debit in one and a credit in another. This system keeps your books balanced and ensures accuracy in tracking your money.

Think of it like this: Every action has a reaction. If cash comes into your business, it has to go somewhere in your records. If you spend money, something else is affected—like your inventory or expenses.

What Are Debits and Credits?

Here’s where many wellness pros start to feel overwhelmed. But stick with me:

• Debits increase asset or expense accounts and decrease liabilities or revenue.

• Credits increase liability or revenue accounts and decrease assets or expenses.

Don’t worry. Let’s turn those accounting terms into real-life wellness examples.

Easy Examples for Wellness Professionals

💆‍♀️ Example 1: You Buy Massage Oil for Your Practice

• You pay $50 cash.

• What happens?

You debit your Supplies because you’re increasing your expenses, and you credit Cash because money is leaving your business.

🧘‍♂️ Example 2: A Client Pays You $100 for a Private Yoga Session

• You receive the payment in Venmo.

You debit your bank account because you’re gaining an asset, and you credit Revenue because you’ve earned income.

🍵 Example 3: You Buy a New Treatment Table on a Credit Card

• It costs $500.

You debit Equipment because you’ve added a business asset, and you credit your Credit Card Payable account because now you owe money.

The Debits & Credits Cheat Sheet

Here’s a handy cheat sheet to help you know what to debit and what to credit:

Remember this tip:

"DEALER" = Dividends, Expenses, Assets (Increase with Debit); Liabilities, Equity, Revenue (Increase with Credit)

Final Thoughts

You don’t have to become an accountant to manage your books—just like your clients don’t need to become wellness experts to feel better. But knowing the basics of debits and credits gives you clarity and control over your finances.

Still feeling unsure? I offer setup and support for wellness professionals like you, so you can focus on healing, not spreadsheets.

Schedule a complimentary strategy meeting.