- Single-entry bookkeeping system
Single-entry bookkeeping system also known as Single-entry accounting system is a one sided
accountingentry to maintain financial information.
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 payableand taxespaid 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 statementand balance sheetby a professional accountant.
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.
#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 entriesare 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.
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
single-entry bookkeeping — noun a simple bookkeeping system; transactions are entered in only one account • Syn: ↑single entry • Hypernyms: ↑bookkeeping, ↑clerking … Useful english dictionary
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 — 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
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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
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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