4 ms·
What are the benefits of double-entry bookkeeping?
by Bromskloss 8y ago
What are the benefits of double-entry bookkeeping?
- eXpl0it3r 8y agoI'm no expert in this area, but I do know accountants, Google can direct you to posts like this Quora thread [1] and while people usually don't accept this as a valid argument, a method that is to this day still widely used from small to huge businesses, seems IMHO to require more than just a "It made sense [...] but not in times of computers"-statement. Also on the whole topic of running a business, you're honestly better off just hiring an accountant to do the work for you, so you can really spend time on your core business. [1] https://www.quora.com/What-are-the-merits-of-double-entry-system https://www.quora.com/What-are-the-merits-of-double-entry-sy...
- maxerickson 8y agoIt simplifies reporting and error checking. Because you are explicitly tracking what you receive, what you have and what you spend, the accounting system can check that the numbers line up.
- kpil 8y agoThere are also a whole system of account categories and mandated systems for reporting. Nice intro here : https://www.accountingcoach.com/debits-and-credits/explanation/1 https://www.accountingcoach.com/debits-and-credits/explanati...