Compare single entry, double entry, cash basis and accrual basis as separate choices.
Single entry or double entry?#
Entry method describes the structure of the books. It is different from the choice of when an income or expense is recognised. Review the existing supported workflow and your business’s requirements before choosing.
| Choice | When it fits | What it changes |
|---|---|---|
| Single-entry cashbook | A simpler record of cash and bank movements. | Supports the released cashbook workflow and its narrower reports. It does not provide a full double-entry balance sheet. |
| Double-entry books | Balanced records across accounts. | Uses debits and credits, a chart of accounts, journals and broader financial statements. Posted entries must balance. |
Cash timing or accrual timing?#
Accounting basis concerns when activity is recognised. Tax reporting basis is a separate confirmation; it must not be assumed to follow a financial setting automatically.
| Choice | When it fits | What it changes |
|---|---|---|
| Cash basis | Recognise activity when money moves. | Use the supported cash workflow and review how payments, deposits and reversals are classified. |
| Accrual basis | Recognise activity when it is earned or incurred. | Requires the supported double-entry configuration and deliberate treatment of receivables and payables. |
Make the choice before entering history#
Foundational book settings become protected once journal activity exists, including drafts. A later change needs a controlled migration; it is not a cosmetic switch.
Opening balances, financial-year start, books start date, reporting time zone and report selection affect interpretation. Confirm them with the person responsible for the books.
Keep the active workspace, actual business requirements and current setup summary in view. A guide explains a choice; it does not make that choice for you.