Single entry bookkeeping is usually only used for small businesses, charities, clubs or societies. It can either be completed using a simple spreadsheet or
a book. It will show the receipts on one side and the payments on the other. It will also include a date and a short description may be used.
Single entry Bookkeeping is less expensive to maintain that double entry bookkeeping because you will not need to hire the services of a trained professional. It is also the simplest way of keeping your accounts in check.
Commonly, only the bare essentials are recorded in single-entry bookkeeping such as income and expenditure.
For most businesses whether self-employed or a registered company single-entry bookkeeping will not be enough to complete the year-end accounts.
It is also possible to extend the information recorded to include an analysis of the income and expenses.
Single Entry Bookkeeping Example
Single entry bookkeeping only shows the transactions posted once either as payment or receipt. It will not include balance sheet items such as bank account, debtors and creditors.
Most businesses need to also include a balance sheet showing debtors, creditors, assets and liabilities, for this double-entry bookkeeping will be required.
The main advantage is that people can understand how to complete the system, but will need to employ someone to complete
the double entry accounts.
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