Single Entry Bookkeeping System (or single-entry accounting system) is a system designed for small businesses and entrepreneurs.
Features of single-entry bookkeeping system:
- Record-keeping function - provides an overview of income, expenditure and movement of assets and liabilities
- Control function - allows limited control of the accounting entity (single-entry bookkeeping uses only income and expenditure, so that control is not complete)
- Tax function - provides the basis for the preparation of tax return
Accounting cases are not recorded in this system on two accounts (such as in the case of double-entry bookkeeping).
The structure of the concept of single entry bookkeeping is given by legal standard of the state.
What is aingle entry bookkeeping for?
It provides relevant information about the state of the enterprise, allows control of economic activities and is used to establish the tax liability.