What is a Cash Book?
The Cash Book is a record of all your business transactions that involve the payment and receipt of cash. If the Cash Book is properly written up it can provide valuable information to help in the running of the business and gives your accountant the necessary data for completion of reports and financial accounts.
The Cash Book records all the transactions that run through your bank account. The cash receipts section records all the deposits, and the cash payments section records all the payments.
All these transactions are confirmed by the bank statement that you receive. Everything that goes through the bank account must show up in your Cash Book in one section or the other and is later reconciled with your bank statement.
Advantages and Disadvantages of a Cash Book
The advantages of a Cash Book are:
- Reliable and proven method of recording all financial transactions
- It can save a lot of money by allowing you to do quite a bit of the work - work that normal...
Please Note: Business Club Membership required
The rest of this article is available to StartRunGrow Business Club members.
To see what's inside - see the Article Quicklinks to the left.
Join Business Club NOW to access this and 100's of other quality articles plus receive many financial benefits