We all know about Adelaide bookkeeping, bookkeeping is an activity done by the bookkeeper to maintain all the financial affairs of the business. Recording all the entry is important as well to ignore the future problems. Well, there are two types of bookkeeping than can be conducted by a bookkeeper in order to record the business transactions. The types of bookkeeping are
- Single-Entry bookkeeping system
- Double-Entry bookkeeping system
These are the two types of bookkeeping system that can be conducted by a bookkeeper
- Single-Entry bookkeeping – This bookkeeping is generally used by the small businesses. It is also referred as the simplest way of recording transactions. In single-entry bookkeeping, general entries are maintained like cash, cash receipts, sale, and purchase. The records maintained in single-entry bookkeeping are the daily summary of cash receipts and disbursement. Opposite of double-entry bookkeeping system where an entry affects two accounts, in single-entry bookkeeping one entry affects one account.
- Double-Entry bookkeeping– this bookkeeping is generally conducted by the big firms and businesses. The procedure of double-entry bookkeeping is quite complex as compared to the single-entry bookkeeping. It introduces the concept of debit and credit. Debit is what comes in the business and credit is what goes out of the business. Recording the transaction accordingly affects’ two or more accounts. The benefit of double entry bookkeeping is that it is a reliable source of recording transactions.
One should choose which Adelaide bookkeeping should be carried by them in their business single-entry or double entry whichever is convenient for them. A small firm can choose from both, a big firm can also choose from both but should prior the double entry bookkeeping system.