The number one difference between single and double entry system is that each method captures different records when preparing financial statements. For instance, in a single-entry system, the financial statement can only capture credit transactions or debit transactions. In a double-entry system, a double recording method is used.
This means if you are preparing a debit record, you must also prepare a corresponding credit record. Similarly, if you are preparing a credit record, you should also include a corresponding debit record. Most times, what determines which method to use out of the two is the complexity of the transactions.
That said, small organizations or businesses usually adopt a single-entry system because of their lower number of transactions. In contrast to this, the double-entry system is mostly used by large businesses or organizations to ensure accuracy. However, small businesses can also use a double-entry system. While you can easily detect errors in a double-entry system, detecting errors in a single-entry system is very difficult.