How Many Bookkeeping Systems Are There in Accounting?

There are two core systems: single-entry and double-entry. Businesses overwhelmingly use double-entry for accuracy and control.

Single-entry (rare in business)

  • Cash-book style: record income/expenses only.
  • Fine for very simple records; lacks balance sheet accuracy and controls.

Double-entry (the standard)

  • Every transaction has equal debits and credits.
  • Produces accurate P&L, balance sheet, and cash flows.
  • Supports audits, lending, and tax prep.

Types Of Reversing Entries

Subledgers & methods

  • AP, AR, inventory act as subledgers tied to control accounts.
  • Cash vs. accrual methods dictate timing; accrual is better for decision making.
  • Inventory can be perpetual (preferred) or periodic.

If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.

Startup Bookkeeping Guide

FAQs

Can a business use single-entry?
It’s risky-no balance sheet integrity.

What’s a control account?
A GL account that summarizes a subledger (e.g., AR).

Do I need accrual?
If you invoice customers or carry inventory, yes.

When To Bring In A Pro

Not sure which method and subledgers you need? We’ll set it up and run the close.

Related reading


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