T accounts are fundamental tools used in accounting to visually represent ledger accounts. Each T account divides into two sides: the left side for debits and the right for credits. This format helps in tracking transactions and understanding the dual-entry system, where each transaction affects at least two accounts. T accounts facilitate the balancing of accounts, ensuring that total debits equal total credits, which is crucial for accurate financial reporting and analysis. Understanding T accounts is essential for grasping the basics of bookkeeping and financial management.