We can’t get enough of single entry bookkeeping. The simplicity of this system may seem a bit overly simple to some but is perfect for people who have just begun their journey into accounting. This system has been a lifesaver for many small business people who do not want to have to grapple with the beast of double-entry. So let’s take a look.

Imagine running your own lemonade stand. (Or a boutique design studio, if feeling fancy.) If someone buys your exceptional lemonade (or cool logos), then you have to keep track of the money. Spend some cash on sugar, or fonts that are of high quality? Also, this is noted. The essence of this bookkeeping method is to keep a single record.

Now, don’t get me wrong. This won’t be a method that wins any awards. It is similar to keeping the score of a game casual backyard cricket. Effective up until a certain level, but definitely not Cricket World Cup quality.

The beauty could be found in the simplicity. Accounting wizards are not required; anyone who can balance their personal checkbook is good to go. You can even understand your business finances if you are a number-phobe.

Here’s the thing: this system, while seemingly simple and straightforward on the surface has plenty of “uhoh” moment. If you’ve ever tried to solve a crime with just half the answers, it is similar to trying to find financial opportunities or mishaps with single-entry bookkeeping.

Now let’s get to the growth part – every owner of a small business dreams about it (and fears that they may not achieve). Your lemonade stands turns into Lemonade Inc. with seven branches, so single entry bookkeeping looks less and less like your comfy jeans.

So, what should an aspiring businessperson do? It’s important to get regular health checks. You can think of them like your financial wellness screenings. Although they are not popular, they help to prevent sudden and unexpected changes in the situation.

Tech can play a role in your success. By using simple software for bookkeeping, you will be able keep the simplicity of your business while still being able to detect trends and traps.

When it comes down to it, it all boils to what suits you best and knowing when to shift gears. The single-entry method may help you manage your finances more effectively, but it’s important to remember that accounting techniques should change with your growing business.

No shame at all in beginning simple. A great journey always begins with just one small step. Be ready to adjust and keep an eye to the horizon. Let’s be honest, nobody wants to be seen wearing jeans that are too tight when there’s a need for something a bit stretchier. Remember to keep the inspectors’ numbers handy because, as they say in fighting mold: an ounce prevented is worth a pounds cure. Do not worry about the parking. The turns are more thrilling than any roller coaster you’ve ever been on! Friends, get ready to ride a roller coaster! Open your eyes and minds because this ride is going to be a roller coaster.