Single-entry bookkeeping system
- Single-entry bookkeeping system
Single-entry bookkeeping system also known as Single-entry accounting system is a one sided accounting entry to maintain financial information.
Overview
Most businesses maintain a record of all transactions based on the double-entry bookkeeping system. However, many small, simple 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. Records of assets, inventory, expenses, revenues and other elements usually considered essential in an accounting system may not be kept, except in memorandum form. Single-entry systems are usually inadequate except where operations are especially simple and the volume of activity is low.
This type of accounting system with additional information can typically be compiled into an income statement and balance sheet by a professional accountant.
Advantages
Single-entry systems are used in the interest of simplicity. They are usually less expensive to maintain than double-entry systems because they do not require the services of a trained person.
Disadvantages
#Data may not be available to management for effectively planning and controlling the business.
#Lack of systematic and precise bookkeeping may lead to inefficient administration and reduced control over the affairs of the business.
#Single-entry records do not provide a check against clerical error, as does a double-entry system. This is one of the most serious defects of single-entry systems.
#Single-entry records seldom make provision for recording all transactions. In addition, many internal transactions, such as adjusting entries are often not recorded.
#Because no accounts are provided for many of the items appearing in both the Income Statement and Balance Sheet, omission of important data is possible.
#In the absence of detailed records of all assets, lax administration of those assets may occur.
#Theft and other losses are less likely to be detected.
ee also
*Dome Publishing, publishers of a popular pencil-and-paper modified-single-entry accounting system
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Look at other dictionaries:
single-entry bookkeeping — UK US noun [U] ACCOUNTING ► a simple system of recording the money spent or received by a small business or organization in one account: »A checkbook is a single entry bookkeeping system where one entry is made for each deposit or check written.… … Financial and business terms
Double-entry bookkeeping system — A double entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts. The name derives from the fact… … Wikipedia
single-entry bookkeeping — noun a simple bookkeeping system; transactions are entered in only one account • Syn: ↑single entry • Hypernyms: ↑bookkeeping, ↑clerking … Useful english dictionary
single entry — noun a simple bookkeeping system; transactions are entered in only one account • Syn: ↑single entry bookkeeping • Hypernyms: ↑bookkeeping, ↑clerking * * * noun : a method or system of bookkeeping that recognizes only one side of a business… … Useful english dictionary
single entry — n. a system of bookkeeping in which the only account kept is a single one consisting usually of a record of cash and of debts owed to and by the concern in question single entry adj … English World dictionary
single entry — single entry, adj. Bookkeeping. 1. an item noted only once. 2. a simple accounting system noting only amounts owed by and due to a business. Cf. double entry. [1820 30] * * * … Universalium
single-entry accounting — A system of tracking business income and expenses that requires each item of income or expense to be recorded just once. Compare: double entry accounting Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & Finances… … Law dictionary
Bookkeeping — is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with… … Wikipedia
single-entry — singˈle entry noun A system of bookkeeping in which each entry appears only once on one side or other of an account • • • Main Entry: ↑single … Useful english dictionary
single-entry — adjective denoting a system of bookkeeping in which each transaction is entered in one account only … English new terms dictionary
