Single-entry bookkeeping system

A single-entry bookkeeping system or single-entry accounting system is a method of bookkeeping relying on a one sided accounting entry to maintain financial information.

Most businesses maintain a record of all transactions based on the double-entry bookkeeping system. However, many smaller businesses maintain only a single-entry system that records the "bare-essentials." In some cases, only records of cash, accounts receivable, accounts payable and taxes paid may be maintained.

This type of accounting system with additional information can typically be compiled into an income statement and statement of affairs by a professional accountant.

Single-entry systems are used in the interest of simplicity. If a double-entry system is needed, then the services of a trained person are often required.

According to the U.S.A. Internal Revenue Service:A single-entry system is based on the income statement (profit or loss statement). It can be a simple and practical system if you are starting a small business.

Additionally, in the U.S.A. stated:

This page was last edited on 5 January 2018, at 02:31.
Reference: under CC BY-SA license.

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