Characteristics of Single Entry

Characteristics of Single Entry

Some important characteristics of single entry system have been explained in this article. In single entry system only few books are maintained as per the requirement of business.

Important Characteristics of Single entry System

Some important characteristics of single entry system include easy, economical, lack accuracy, lack controls, support small scale business etc. These characteristics have been briefly explained below

1.    Easy & Simple

Single entry system or single entry book keeping is very easy & simple. This system does not involve any complexity and can be handled with some basic knowledge of business and mathematics.

2.    Economical

Single entry system is economical and does not involve many costs. In single entry system High paid professional is not required for maintaining books of accounts, similarly single entry system have limited stationary & processing costs.

3.    Lack of Accuracy

 It is not possible to prepare accurate accounts in single entry system due to many inherent limitations of this system. This is a major limitation of single entry system and a person does not prefer this system for this limitation.

4.    Lack of Control

Single entry system lacks control and therefore is not preferred by the large scale organizations/businesses. Single entry system does not have built in control for mistake detection.

5.    Accountant not required.

In single entry system books can be maintained or handled by the businessman himself. Thus an important cost of expensive finance manager can be saved in single entry system.

6.    Suit Small Scale business

Single entry system suits or suitable for small scale operations mainly due to low costs. However, this system is not suitable for large scale organization due to its various limitations. Large scale organization maintains books of account under double entry system. Characteristics of double entry system have been explained in my other article.

7.    No Standard Rules

There are no standard rules for maintaining books in single entry system. Thus there is complete freedom of choice and action.

8.    List of Characteristics of Single Entry System

Single entry system characteristics are listed below

a.    It is easy & simple.

b.    It does not involve many costs.

c.    It lacks accuracy.

d.    Single entry system lacks controls.

e.    Accurate reporting is not possible.

f.     It does not required professional /accountant for maintenance.

g.    There are not standard rules for maintaining the books of accounts.