Looking For Info ABout Double Entry Bookkeeping?Double entry bookkeeping is identified by the fact that every transaction produces at least one credit entry and at least one debit entry. The credits must equal the debits. However, these entries can be spread across one or more funds. In business or at home, the double entry system represents the same process. When you buy something or pay a bill, you receive a receipt. Likewise, when you make a deposit of any kind, you receive a deposit slip. Receipts and deposit slips are called source documents. In any bookkeeping method, whether it is a double or single entry method, on paper or on a computer system, you have to create an entry for each source document. Say you are using a double entry system and so is a local store. You go out and buy soda from this store. The store would credit an account called sales and debit the account called bank. If you were a business, you would debit purchases and credit the bank. Many reports are generated using this information. Here is where the difference comes into play. In a double entry system, each transaction must include a debit distribution and a credit distribution. In a single entry system, each transaction is only one entry. It is either an income entry or and expense entry. The taxable income is the difference between income and expenses for the year. Most companies using single entry are small and have simple financial statements. Okay, back to our discussion of double entry bookkeeping. Double entry can give you a much more in- depth look at your financial situation via instant reports available with every entry representing a change in your financial picture. Not only do you get the software, but you usually have access to training on line, including self-study guides and tutorials. Some of these companies even have local training available. There is usually a FAQ, frequently asked questions, sections, sometimes listed as customer support. Many of these software companies even have live support available where you can have a live email chat to discover what your problem or error is and how to correct it and/or an eight hundred, toll free number to call in order to speak with a customer service representative. There is no way I would use a manual system considering the premium software packages available today. If you are doing your books by hand, consider looking into one of the user-friendly software packages available. For the price you pay when you buy software, you receive access to software that automates your reports and financial statements, thus saving you time and the headache of reconciling your entries by hand. |