What is Single Entry Accounting?
Single-entry accounting is a simple method of bookkeeping where only one entry is made for each financial transaction, typically recording only the cash transactions of a business. In single-entry accounting, transactions are recorded in a single ledger, usually a cash book or a simple spreadsheet, without following the double-entry accounting system.
- Transactions are recorded as they occur, usually in a cash register or a journal.
- Single-entry accounting typically lacks the detailed tracking of accounts found in double-entry systems.
- Single-entry accounting is less complex than double-entry accounting, making it suitable for small businesses, freelancers, or sole proprietors with straightforward financial transactions.
- Single-entry accounting is often considered less formal than double-entry accounting.
- Single-entry accounting is more susceptible to errors and omissions compared to double-entry accounting, as it relies on manual recording.
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