Definition
Single-entry bookkeeping is a basic accounting system in which each transaction is recorded as a single entry, typically tracking income and expenses.
Related Services
This method is often used by small businesses, freelancers, and sole proprietors for simplified financial management.
Problem and Application
Single-entry bookkeeping lacks the detailed tracking of double-entry systems, making it harder to detect errors and track liabilities. Businesses with high transaction volumes or complex finances should use double-entry bookkeeping.
Conclusion
While simple and easy to implement, single-entry bookkeeping is best suited for small businesses with straightforward financial needs.
