Single-entry bookkeeping system

A single-entry bookkeeping system or single-entry accounting system is a method of bookkeeping relying on a one sided accounting entry 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 payable and taxes paid may be maintained.

This type of accounting system with additional information can typically be compiled into an income statement and statement of affairs by a professional accountant.

Single-entry systems are used in the interest of simplicity. They are usually less expensive to maintain than double-entry systems which require a significantly larger amount of expertise. If a double-entry system is needed, then the services of a trained person are often required.

According to the U.S.A. Internal Revenue Service: "A single-entry system is based on the income statement (profit or loss statement). It can be a simple and practical system if you are starting a small business. The system records the flow of income and expenses through the use of:

Additionally, in the U.S.A. Internal Revenue Manual, it is stated:

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