What is single-entry bookkeeping?
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Definition
Single-entry bookkeeping is a simple way of keeping the books in which each transaction is recorded once, usually as a line of money received or money paid out. It tracks income, spending and the bank balance, much like a personal spending record, but it does not keep balanced accounts for assets, liabilities and equity.
A single-entry record is usually a list with a date, a description and an amount in a money-in or money-out column, sometimes with extra columns to group spending. It is quick to learn and can be kept on paper or in a spreadsheet.
Its limits show as a business grows. With no second side to each entry there is no built-in check that the figures add up, and no running record of unpaid invoices, supplier bills, stock or loans. A balance sheet has to be pieced together from other information.
A business that starts this way often moves to double-entry bookkeeping once it invoices customers, buys on supplier accounts or borrows, because those are the amounts a single-entry list does not track.
In Australia
business.gov.au defines single-entry bookkeeping as a method, used in a cash accounting system, that records only one side of each transaction. It says cash accounting suits smaller businesses whose transactions are mostly in cash, such as a hairdresser or grocery store, but does not show money owed to you or money you owe others.
For a business that is comfortable with a computer but does not have the funds for an accounting package, business.gov.au suggests setting up spreadsheets for its accounts.
The ATO's record-keeping rules say you need to be able to reconstruct your original data if your record-keeping system changes over time. That matters when a business moves its records from a single-entry spreadsheet to accounting software.
Worked example
| Day | Details | Money in (AUD) | Money out (AUD) |
|---|---|---|---|
| Monday | Cash sales for the day | 640.00 | |
| Tuesday | Fuel | 92.40 | |
| Wednesday | Cash sales for the day | 715.00 | |
| Thursday | Stock from a wholesaler | 1,130.00 | |
| Friday | Cash sales for the day | 880.00 | |
| Week total | 2,235.00 | 1,222.40 |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Keeping no list of unpaid supplier bills, because a single-entry record shows a bill only once it is paid.
- Typing over old figures in the spreadsheet to correct a mistake, so the original record is lost.
Related terms
Related service
Software set-up and training
Bank feeds connected and your team trained to use the software.
Sources
- Key financial terms
business.gov.au, Australian Government. Current at 15 October 2026, released 9 July 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Choose between cash and accrual accounting
business.gov.au, Australian Government. Current at 15 October 2026, released 13 September 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Record keeping
business.gov.au, Australian Government. Current at 15 October 2026, released 7 November 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Overview of record-keeping rules for business
Australian Taxation Office. Current at 18 June 2026 (QC60718), released 18 June 2026. Checked 15 October 2026.
© Australian Taxation Office for the Commonwealth of Australia Licence: ATO website copyright notice (copy, adapt and distribute, without implying ATO endorsement).