Single-entry accounting

Single-entry accounting (often called single-entry bookkeeping) is a simple way to keep business records where each transaction is written only once, usually in a cash book or spreadsheet. It tracks money in and money out by category, which can suit very small businesses and sole traders with straightforward cash-based activity.

Unlike double-entry, there are no matching debits and credits and no full ledger of assets and liabilities. It’s quick to maintain, but offers less control: errors are harder to spot, and it does not naturally show a balance sheet or unpaid invoices.

Simple pattern

Record customer money received as income when it reaches the bank, and supplier payments as expenses when you pay them. If you issue an invoice that isn’t yet paid, there’s no entry until the cash arrives.

To use it well, keep a clear cash book for bank and cash, apply consistent categories, and reconcile with bank statements regularly. Keep receipts and invoices so you can explain each entry if needed.

Key features and limits to keep in mind:

One line per transaction; focus on cash and bank movements.
Simple categories for income and expenses; no debits/credits.
Limited error checking; arithmetic can balance even when entries are missing.
No built‑in tracking of debtors, creditors, stock or fixed assets.
Produces a cashbook and a basic profit view; not a full balance sheet.

Consider your needs

If you handle VAT, stock, or give customers credit, double-entry accounting usually provides clearer control and reporting.

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