Many small, simple business maintain the books of accounts under Single entry system that records bare essentials. In some cases only records of cash, accounts receivable, accounts payable and taxes paid may be maintained.
Single entry system of book keeping is easy to maintain as compared to double entry system which require larger amount of expertise. A single entry system records each accounting transaction with a single entry to the accounting records. It is centered on the results of the business which are reported in the Income statement. The core information tracked here is cash disbursements and cash receipts. Asset and liability records are usually not tracked: these items are to be tracked separately. The primary form of record keeping is the cash book. There is much less information available upon which to construct the financial position of a business, so management may not be fully aware of the performance of the business. It is mainly used in manual accounting system and not in computerised accounting system as it asks for double entry system principles.