There were two different types about bookkeeping system. These are the single entry bookkeeping type of system and the other one is the double entry type of bookkeeping system. How are these two differs are being explain further below.
Learning on the two types of bookkeeping system is very necessary especially in identifying which of the two you will be going to adopt and be use in keeping your records of business-client transactions. Through studying the two different bookkeeping systems, you can easily determine which of it is appropriate to your business or to your client whom you want to serve.
Now you will be introduced to what a single -entry bookkeeping system is and what is a double -entry bookkeeping system:
1. The single entry bookkeeping system. Single entry Bookkeeping System is generally utilized by the bookkeepers for little organizations with next to no or insignificant exchanges. It is frequently alluded to as straightforward, down to earth and casual method for recording. For the most part, it just keeps up a record of money dispensing, money receipts, deals and buys. All whatever remains of the bookkeeping records, for example, stock, gear, capital, and so forth, are just recorded as update or notes.
2. The double entry bookkeeping system. This the standard way of a record-keeping which is commonly used mostly by the business ventures, accountants and of course the bookkeepers.read this post here!
The process of a double entry bookkeeping system is much detailed and more complex than of that single entry bookkeeping system. Here, the concept of debit and credit were being introduced which would mean that in every made transactions there will be something to receive which is the debit and there were to be given up which would mean a credit as being such that the recorded transaction will affects two or more of the accounts.
The advantage of a double entry bookkeeping system in your business is that it would have a procedures that will ensure that the work of the bookkeeper is accurate …Read More