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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
Leigh Cummings

Leigh Cummings, Director at

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

Hatty Bell, Community Manager at

Great insight - thanks @Leigh Cummings ! It sounds like a complicated process. When should double-entry be used?

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Hatty Bell

Hatty Bell, Community Manager at

Would love to hear your thoughts @Leigh Cummings !

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