Single Entry or Double Entry

The following may help you to decide which method to use.  However, these are only a guide.

When to use Single Entry accounting

  • your accounting transaction volume is relatively low
  • you are willing to pay an accountant to draw up your accounts and/or complete your tax return at the year end
  • you are using a manual system or a pre-printed accounting record book
  • you are using a simple spreadsheet to “keep your books”
  • you don’t understand or haven’t got time to learn double entry bookkeeping

When to use Double Entry accounting

  • you have high transaction volume
  • you need the extra analysis and information that double entry gives, in order to run your business
  • you are using an accounting package that requires double-entry
  • you are comfortable with the principles and practice of the double entry system
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