A more thorough explanation:

Single-entry accounting is a way of keeping track of a business's money by recording each transaction only once. This is different from double-entry accounting, which records each transaction twice to keep track of assets, liabilities, and equity.

For example, if a business sells a product using single-entry accounting, they would record the expense of buying the product when they bought it and the revenue from selling the product when they sold it. In contrast, under double-entry accounting, the business would record an increase in inventory (an asset) and a decrease in cash (an asset) or an increase in accounts payable (a liability) when they bought the product. When they sold the product, they would record an increase in cash or accounts receivable (an asset) and a decrease in inventory (an asset).

Single-entry accounting may work for small and simple businesses, but it may not give a larger business an accurate picture of their finances. This is because single-entry accounting does not take into account concepts like inventory and cannot create a balance sheet.

For example, a small business that sells handmade crafts at a local market may use single-entry accounting to keep track of their sales and expenses. They would record the cost of materials when they buy them and the revenue from selling their crafts at the market. However, a larger business that sells products online and in stores would need to use double-entry accounting to keep track of their inventory, expenses, and revenue.