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Benefits of the Double Entry Bookkeeping System:
One of the benefits of the double entry bookkeeping system is its error-catching feature. Manipulating income leaves a trace on the financial statements and an auditor can detect the fraud by examining whether the entry is credible. For instance, if a company decides to inflate the cash on its books or if there is simply an error, due to the matching principle of accounting that is inherent in double entry bookkeeping, there is another account, such as Accounts Receivable, that needs to be adjusted. Therefore, there is a greater chance of finding the fraud/error because there is more than one account that is affected by this false/erroneous entry.
Another benefit is its focus on income and capital. When the double entry bookkeeping system came about, it was geared toward the merchant who was evaluating his financial position by the amount of income and capital he had. This is still the focus of double entry bookkeeping. The system integrates real and nominal accounts, which allows transactions to be expressed as the balance of a single profit and loss account. In addition, while there is still subjectivity in accounting when it comes to estimation of certain accounts like bad debt expense, double entry bookkeeping provides a systematic calculation for income. Although the books of a business have become much more complex with new accounts added as well, this aspect of uniformity still applies today. The system is also enhanced when there is a separation of duties.
In addition to the advantage of splitting the work, thus allowing more work to get done, different people can also keep different journals, thus allowing for separation of labor and mitigating the possibility of fraud. Another benefit is that the double entry bookkeeping system leaves an audit trail. It is an organized process since first an entry is posted to the journal, which then transfers to the ledger, as well as the use of reference numbers in all books, allows for a tracing function

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