Once we can color cashflow, we can control it. Control sounds too solemn　but it means just we can see our cashflow.

To be simple, let me take an example from household not from business.

All we can use to buy is money in your purse, deposit in your bank account, credit cards, e-money like SUICA. These are called as Asset.

As I mentioned in previous article, handing over money, which is using Asset in other words, enables us to use it whatever we want. So we recognize expense.

Deals have a duality, when Asset uses we recognize expense. Only if we only have cash, it is enough to pay attension on expenses. But nowadays we have more ways to pay so that it is a Must to take care of duality.

Double entry system is great for the duality of deals.