2016-11-09 00:00:00BookkeepingEnglishLearn what single-entry bookkeeping is and discover some of its pitfalls.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/10/Accountant-reviews-single-entry-bookkeping-on-smartphone.jpghttps://quickbooks.intuit.com/ca/resources/bookkeeping/what-is-single-entry-bookkeeping/What is Single-Entry Bookkeeping?

What is Single-Entry Bookkeeping?

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A single-entry bookkeeping system is an accounting system that records each transaction in a journal or log with one entry per transaction, as opposed to the more popular double-entry systems that record a single transaction in two places. Typically, only cash transactions, both receipts and disbursements, are recorded in a single-entry system.

Commonly accepted problems with a single-entry system are:

  1. Assets aren’t tracked, so they can more easily be lost or stolen.
  2. Liabilities aren’t tracked, which can cause problems with payment information.
  3. A proper audit can’t be done on a single-entry system.
  4. Errors are much more common than a double-entry system.
  5. There is much less information available for reporting purposes.
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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