The following may help you to decide which method to use. However, these are only a guide.
When to use Single Entry accounting
- your accounting transaction volume is relatively low
- you are willing to pay an accountant to draw up your accounts and/or complete your tax return at the year end
- you are using a manual system or a pre-printed accounting record book
- you are using a simple spreadsheet to “keep your books”
- you don’t understand or haven’t got time to learn double entry bookkeeping
When to use Double Entry accounting
- you have high transaction volume
- you need the extra analysis and information that double entry gives, in order to run your business
- you are using an accounting package that requires double-entry
- you are comfortable with the principles and practice of the double entry system
