Disadvantages of Double Entry Bookkeeping

  • Double entry bookkeeping is harder to understand (worringly, there are fully qualified accountants who don’t “get it”, although they are in a minority – I hope)
  • It follows, then that, if you don’t already have the accounting know-how, you’ll either have to learn or hire/outsource someone to do it for you.
  • If you don’t know what you are doing, but plough through anyway, things can get a bit messy when trying to correct errors with journals.  (How messy partly depends on whether you have a manual or computerised system and if the latter, which package you are using.  But I digress…)
  • It is a bit more time-consuming, not least because by it’s very definition, every transaction is entered twice.
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2 responses to “Disadvantages of Double Entry Bookkeeping

  1. Apart from the disadvantages of Double entry bookkeeping system there are lots of advantages and it is well known to every bookkeeper that single entry bookkeeping would not suitable for everywhere.

  2. Hi Gopal,
    Yes, I agree that there are many advantages to double entry bookkeeping, some of which I outlined in my 3 July post. What I’m saying is double-entry bookkeeping is not for every business and SMEs should not waste their time trying to do it if it does not add value to their operation. In my post of 5 July I make a few points to help SMEs decide which bookkeeping system might be more appropriate for their circumstances.