There are two different systems in the accounting world used by large and small businesses to capture financial transactions. These are single and double-entry bookkeeping. Both systems "do the job," but that depends on what your personal preference is. However, unless you are a small transaction with simple transactions, double-entry bookkeeping will be most beneficial for you and the financial situation of your company
Single-entry bookkeeping is similar to a checkbook register where only one serial transaction is fixed reflecting cash credit or debit. This is an easy way to keep track of your money, less costly and less sustainable with less effort. Single-time bookkeeping only takes into account cash, debts, accounts, and paid taxes. Deeper records, such as assets, resources, inventories, expenditures and revenue, are not maintained, thus leading to an incorrect representation of financial records. This is double-entry bookkeeping.
Double-entry bookkeeping, which has existed since the 1400's and which is the basis for generally accepted accounting principles, plays a little more role. In a column, instead of just one transaction, two entries contain two entries for each transaction. The revenue entered in the company and the debit batch of paid transactions are credited. Finally, these two entries conflict each other so that both sides are reset. With this in mind, double-entry bookkeeping has the following benefits to one-time bookkeeping:
1. Checks on accounting errors, including theft, occur automatically when the transactions are recorded and the total amount of debit items is equal to the total amount of the credits.
2. The preparation of the financial statements can be easily created by the accurate and continuous calculation of the gains (credit) and the loss (collection).
3. Both fixed entries (sales and purchases) allow you to track who belongs to the company's money and make it easier for the company to make money.
4. The company's financial position is clearly illustrated and quickly available for effective business planning.
5. For higher levels of use, double-entry accounting has a strict approach, which prepares detailed records for each device so that the company does not lose any revenue.
6. Double-entry bookkeeping takes into account internal transactions such as an entry correction that provides more accurate information at the end of the financial year.
7. Removing important data is never a problem because two transactions are recorded in two separate columns twice.
Though the introduction of computer systems has reduced the benefits considerably, double-entry accounting is still more practical, scams and bugs. Whether you're a single or two-tiered accountant, as long as you keep your financial records up to date, continue with the numbers and get the results you want.
Source by sbobet