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