Double-Entry Bookkeeping Versus Single-Entry Bookkeeping

By QuickBooks Canada Team

0 min read

Single-entry bookkeeping is where a financial transaction is logged in one account in your small business’s accounting systems. With double-entry bookkeeping, the same transaction is recorded twice, with two offsetting entries in two different accounts within your accounting system.

The single-entry system is easier and can be used by small businesses that do not require balance sheets financial reporting or tax purposes. The double-entry system has the major benefit of being far more accurate; businesses that produce a profit and loss account and maintain a balance sheet must use double-entry bookkeeping.

Essentially, if a business needs to track its assets and liabilities, a single-entry system is not sufficient. In that case, the business must use a double-entry system.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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