What is Objective of single entry system?

The objective of the single entry system is to simplify the accounting process for small businesses and sole proprietors by maintaining a simplified record of financial transactions. It primarily focuses on tracking cash inflows and outflows without the need for comprehensive double-entry bookkeeping. This system aids in monitoring an entity's financial status while minimizing complexity and costs associated with accounting. However, it may not provide a complete picture of financial health, making it less suitable for larger businesses.