What are the disadvantages of double-entry bookkeeping?

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thetall eNotes educator| Certified Educator

The disadvantages of double-entry bookkeeping include;

  • The Complexities arising when there are different departments, located in different places and each maintaining individual records. This makes the double entry system quite expensive especially, with regards to the amount of labor and time required to maintain such records. These costs often increase as the records become complex with time.
  • Cross checking of the double entry system is time-consuming. All entries must be entered twice and confirmation of the figures must be done to eliminate errors and ensure the reliability of the results in the final record.
  • The Double entry system is generally complex and prone to errors of omission. This is because it is often difficult to detect omitted entries. The errors leave no trace as the books will still balance despite the omission, further compounding the problem.