When you connect your bank, upload a statement, or manually enter transactions, you don't have to worry about debits and credits. Wave handles all of this for you. If you are looking at your reports and things don't look quite right, you can quickly check by knowing what should be a debit and what should be a credit.
If you want to check to make sure your transactions are correct, go to Reports and click Account Transactions. On this report, filter by your bank account, such as checking.
For an asset, such as a checking or savings:
- Deposits are debits.
- Withdrawals are credits.
For a liability, such as a loan or a credit card:
- Received payments (transactions "paying off" your credit card) are debits.
- Expenses/purchases are credits.
What about moving money from one account to another, like when I pay my credit card?
In Wave, when you move money from one account to another, this is considered a transfer (Learn more about How to create a transfer). But, the same debit & credit rules apply. If you move money from checking to pay your credit card, it will credit your checking account and debit your credit card.
That's a pretty basic overview of debits and credits! For a super deep dive on this, Accounting Coach has a great Debits & Credits Explanation