methodology

Single Entry Accounting

Single entry accounting is a simple bookkeeping system where each financial transaction is recorded only once, typically in a cash book or journal, focusing on cash inflows and outflows. It does not use double-entry principles, making it less formal and suitable for tracking basic income and expenses without balancing debits and credits. This method is often used by small businesses, freelancers, or individuals for straightforward financial management.

Also known as: Single-entry bookkeeping, Simple accounting, Cash basis accounting, One-sided accounting, SEA

🧊Why learn Single Entry Accounting?

Developers should learn single entry accounting when building or maintaining financial software for small-scale applications, such as personal finance apps, basic invoicing systems, or tools for freelancers, as it simplifies data modeling and reduces complexity. It's useful in scenarios where users need quick insights into cash flow without requiring full accounting compliance, but it's not suitable for larger businesses needing audit trails or comprehensive financial reporting.