Two ways to organise the same business story.
An entry method describes the structure of your books. Single entry keeps a straightforward record of money received and spent. Double entry records the corresponding effects across a ledger, with equal debit and credit totals. The IRS describes both approaches in its bookkeeping guidance.
Single entry and double entry, side by side.
| Consideration | 01Single entry | 02Double entry |
|---|---|---|
| Starting point | An income and expense cashbook, organised into useful categories. | A chart of accounts and journals that record both sides of each transaction. |
| Daily work | Record a receipt or payment, its date, category and cash or bank account. | Prepare the account lines, review equal debit and credit totals, then post. |
| Financial detail | Focus on cash movements, category totals and recorded bank balances. | Track income, expenses, assets, liabilities and equity within one ledger. |
| Reports in Emnaro | Cashbook and income/expense summaries. Full trial balance and balance-sheet reporting use double entry. | Trial balance, profit and loss, and a balance sheet based on posted ledger records. |
| A practical fit | Simple personal or small-business records centred on received and paid money. | Companies and workspaces that need receivables, liabilities, account control or more detailed reporting. |
Both methods depend on complete records and the right treatment of each transaction. A balanced journal can still contain a wrong account, date or amount.
A simple office expense.
Imagine a business pays 100 from its bank account for office supplies. These examples illustrate the recording mechanics; they leave tax out to keep the comparison clear.
One payment record.
- Type
- Money out
- Category
- Office expenses
- Paid from
- Business bank
- Amount
- 100
Two account effects.
| Account | Debit | Credit |
|---|---|---|
| Office expenses | 100 | — |
| Business bank | — | 100 |
| Total | 100 | 100 |
The double-entry record explains both the expense and the reduction in the bank asset. Equal totals are a posting check; the supporting receipt explains what actually happened.
Cash and accrual describe timing.
Entry method and accounting basis answer different needs. Cash basis recognises income and expenses when money is received or paid. Accrual basis recognises them when earned or incurred, which can be before payment. The Australian Government explains this timing distinction in its cash and accrual guide.
Cash basis
A customer pays on 20 June. The receipt belongs to the period containing 20 June.
Accrual basis
Completed work is invoiced on 10 June and paid later. The sale and receivable can arise before the bank receipt.
Emnaro’s single-entry cashbook uses cash basis. Double-entry setup lets you select the supported basis separately. Your tax-reporting basis can have its own country rules; do not infer tax eligibility from this product setting.
Choose for the records you need to keep.
We recommend double entry for companies and for workspaces with more complex transactions or reporting needs. If your aim is a simple record of income and expenses, the single-entry cashbook provides a lighter starting point.
During setup, confirm your registered country, business identity, tax registration, base currency and financial year. Decide who may view records, prepare drafts and approve posting. Review the entry method with your accountant if you are unsure which records your organisation needs.
Once journal activity exists, including drafts, the accounting foundations are protected. Remove incompatible drafts before changing them; posted history keeps them locked. Choosing a method does not establish local tax compliance, regulator approval or certified software status.