What are Blind Entries?

A blind entry is a fairly common example of posting information that is found in financial bookkeeping. Blind entries have to do with the correct posting of various types of credits and debits on balance sheets, and other basic forms used in standard accounting practices. What sets blind entries apart from other forms of entries is the level of detail that is included with each entry.

Blind entries center on two simple elements of the transaction. First, there is the identification of the entry as either a debit or a credit. Second, the currency value of the transaction is recorded in the proper column or field in the accounting books. What is lacking with blind entries is any detail about the nature of the transaction. This means there is no information recorded about the vendor associated with the transaction, any description of the goods or services purchased or sold for the amount recorded, or an internal code that would identify the origin of the transaction.

Blind entries do have some practical uses. First, the simplicity of the record keeping is ideal for home businesses, where the main idea is to keep up with general credits and debits. If the income is more or less from the sale of one particular good or service, there is not much reason to differentiate between various sources. Second, if the main idea is to record credits that are directly related to the operation of the business so that it is quick and easy to see what, if any, net profit is resulting from the business, blind entries represent a lot less detail to sift through.

However, blind entries may not be the best option in a number of business situations. When a great deal of detail is required in order to properly identify receipts from the sale of multiple goods or services, and to break down the cost of operation between various departments within the company, blind entries do not provide much in the way of advantages.