How does a single entry system work?

A single entry system is a basic method of accounting where only one entry is made for each financial transaction, typically in a cash book. This system is simple and easy to maintain, as each transaction is recorded as a summary with only the basic details such as date, amount, and description. However, it does not provide detailed insight into the financial health of a business, as it lacks the double-entry system's checks and balances. Additionally, it may not adhere to generally accepted accounting principles, making it less useful for larger or more complex businesses.

This mind map was published on 26 October 2024 and has been viewed 11 times.