Double-entry bookkeeping
In double-entry bookkeeping every transaction is recorded on two accounts, once as a debit and once as a credit; the balance sheet and income statement follow from that, and the equality of the totals is the built-in control.
Definition
The benefit is not the doubling but the statement: it shows at the same time what the business owns and owes, and how it performed over the year. A receipts-and-payments statement can do the second, not the first.
In practice «double» mostly means «accrual-based»: expenses and income belong to the year they substantively fall in, not the year of payment. That is precisely the difference between accounts and a cash book.
Where to read it
What the software must be able to do
Every program that produces a balance sheet and income statement keeps double entry — the question is whether the user sees it. Some hide the posting logic behind processes, which eases the learning curve and hampers troubleshooting.
Checked Aug 2026
More terms under Bookkeeping and retention: Accrual principle Accrued liabilities Annual accounts Association accounting Balance sheet Balance sheet total Book value Break-even point Business assets Business expenses Cash book Cash flow statement Cash receipts Contribution margin Cost centre Current assets Debit and credit Depreciation Duty to keep accounts EBIT EBITDA Equity Equity ratio Financial year Fixed assets Fixed costs Foreign currency General ledger Gross profit Hidden reserves Income statement Inventory count Journal Journal entry Liabilities Liquidity Loss carry-forward Membership dues Net profit Opening balance sheet Overheads Pass-through item Prepaid expenses Provision Record-keeping ordinance Reserves Retained profit Simple accounts Swiss SME chart of accounts Tamper resistance Turnover Value adjustment Variable costs Volunteer-run structure Voucher Year-end closing modules