Bookkeeping Basics
Single vs Double-Entry Bookkeeping (Plain English)
Short answer
Single-entry tracks one side of every transaction — like a checkbook. Double-entry records each transaction in two accounts (debit + credit), making it impossible to lose track of money. Any business with inventory, loans, or employees should use double-entry. Modern software does it automatically.
You don't need to memorize debits and credits, but you should know which system your books use — and why double-entry has been the standard for 500 years.
The 30-second example
You buy a $400 tool with cash. Single-entry: write '−$400 tool' in your register. Done.
Double-entry: cash account −$400 AND equipment (asset) account +$400. The two sides always balance. If they don't, something is missing.
When single-entry is fine
- Solo business, under $50K/year revenue
- No employees, no loans, no inventory
- Filing Schedule C only, no business returns
Frequently asked questions
Does Glo Invoice use double-entry?
Yes — every invoice, payment, and expense touches the correct accounts automatically, so your books balance without manual debits and credits.
Bookkeeping, done for you.
Glo Invoice keeps your P&L, AR, and expenses in sync automatically — no spreadsheets, no surprises.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.