Any time the idea of double entry bookkeeping comes up there is nothing but unanimous advocacy for it. This thread echoes the same sentiment where there's several comments about the importance of double entry. And yet like all previous endorsements I've heard, I've not been able to take away why it is so important. The reasons are always around error tracking, tracing source of funds, standing the test of time etc. and yet in my head I'm not able to envision the specific problem double entry can solve that single entry cannot.
Somewhere in my head I feel a double entry system makes sense if you have two different parties making respective entry. But if it's all with a single party, single entry system should be equivalent to a double entry system. My accounting concepts are weak so I'm unable to justify. Hoping someone with more expertise can shed some light here.
Somewhere in my head I feel a double entry system makes sense if you have two different parties making respective entry. But if it's all with a single party, single entry system should be equivalent to a double entry system. My accounting concepts are weak so I'm unable to justify. Hoping someone with more expertise can shed some light here.