The double-entry bookkeeping system is commonly used in the accounting and business world to help companies keep track of financial transactions and inventory. Double-entry accounting is simply using two entries for every transaction that takes place, so that one account is credited while a corresponding account is debited for the same amount. These types of entries are used in accrual accounting, a form of accounting where transactions are accounted for as they occur. The double-entry system has many advantages, but it also has some problems.
Original Article Source Credits: Chron , https://smallbusiness.chron.com/
Article Written By: Jared Lewis
Original Article Posted on: NA
Link to Original Article: https://smallbusiness.chron.com/problems-doubleentry-bookkeeping-systems-38241.html