What is Single-Entry Bookkeeping?

by Greg DePersio

0 min read

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.

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