Official FAQ Answer Wiki at SavvySME
How does double entry bookkeeping affect the budgeting process?
Does the double-entry system of bookkeeping improve the budgeting process? How so? Should I be using the double-entry system instead of the single-entry system?
Top voted answer
Top 10%
Bookkeeping
Basically every transaction has 2 sides to it. If you buy some stationery, it increases your office expenses and decreases your bank. Double entry is using different ledgers to show these transactions. When using a single-entry system, it is affecting both accounts, but you are concerntrating on one side of the transactions.
To improve your budgeting process, using a single-entry system is easier to understand and what I would recommend.
Hatty Bell, Executive Assistant at Country Road Group
Great insight - thanks @Leigh Cummings ! It sounds like a complicated process. When should double-entry be used?