How to Keep Bookkeeping Records

The Basics of Double Entry Bookkeeping
The term "double entry bookkeeping" has the same meaning as "double entry accounting" and is in fact the one and same thing.

There are 2 basic bookkeeping methods used - single entry and double entry.

1. Single Entry - is a system whereby only one entry is recorded for each transaction, hence the term single. Many businesses can run quite well using the single entry system. The only problem is that there is no check on accuracy and if you leave out an item then it is very difficult to pick up if that item has been missed. Single Entry is sufficient for smaller businesses where there is little need for a double entry type system.
   
   
2. Double Entry - requires 2 entries for every transaction. It means that for every debit there has to be a credit. For every transaction going out there must be a corresponding transaction coming in. This double entry method provides a cross check and ensures that errors are minimised. It is the best option and is the accepted accounting system in use for most businesses today.

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