Single Entry Accounting is a simple bookkeeping method that records financial transactions in a single ledger. This system typically tracks cash inflows and outflows, making it easy for small businesses or individuals to monitor their finances without complex accounting software. Unlike Double Entry Accounting, which requires recording each transaction in two accounts, single entry focuses on a straightforward approach. It is less comprehensive and may not provide a complete picture of a business's financial health, but it is user-friendly and cost-effective for those with limited accounting needs.