With single-entry bookkeeping, you record transactions in a notebook or journal as you pay bills and make deposits. This method only works for the smallest companies with a low number of sales and expenses.
Double-entry bookkeeping is more common. You’ll make at least two entries for every transaction – you’ll record a debit to one account and a credit to another account. When you run financial statements, your assets will equal your liabilities and your owners’ equity.
Double-entry bookkeeping is more common. You’ll make at least two entries for every transaction – you’ll record a debit to one account and a credit to another account. When you run financial statements, your assets will equal your liabilities and your owners’ equity.
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