What is the difference between bookkeeping and double-entry bookkeeping?

Single-entry bookkeeping is a simplified method of recording financial transactions, where income and expenses are primarily tracked in a cash register. This system is relatively straightforward and suitable for smaller businesses. In contrast, the double-entry system, a more comprehensive approach, initiates the accounting process with a journal, followed by a ledger. It then progresses to a trial balance to ensure accuracy before generating financial statements. The double-entry system is preferred by larger organizations and is renowned for its precision in maintaining a balanced and comprehensive financial record, making it an invaluable tool for financial analysis and decision-making.

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