February 19, 2013
Learning different types of bookkeeping can be very beneficial to any business and will allow that business to choose the one best for their specific needs. Single Entry is a simple approach for small business with minimal transactions. This type of bookkeeping only maintains a record of cash disbursement, sales, purchases, and cash receipts. This shows a daily summary as well as monthly summary, and only effect one account. Double Entry bookkeeping is the standard and is used by most business, small and large. Using double entry bookkeeping introduces debit and credit into the equation. These records effect more than one account and are more accurate and complete than single entry bookkeeping. The one write system or peg board method of bookkeeping is very useful for small business and captures the transaction at time of payment. There is no need for recopying information and this method is compatible with most electronic data processors if the business is computerized. This is a simple two paper system, a check and a ledger.
I think that the most useful and simple method of bookkeeping in my opinion is the peg board method. I liked the ledger that we used in class; it was simple and easy to use. By entering every transaction at time of payment there is a slim chance of error or wrong balance. In my mind this is the best way to track financial records for a small to moderate business.
MissCPA. (2011). Types of bookkeeping systems. Retrieved from http://misscpa.com/types-of-bookkeeping-systems/ One write system . (2012). Retrieved from http://www.ventureline.com/accounting-glossary/O/onewrite-system-definition