Should you have 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 normally your accountant would do

  • If you have to pay GST or Vat or Sales Tax then the cash book can be set up in such a way that these amounts can be easily identified in its own column and easily accounted for to the Tax Department. 

  • Possible to see how the business is going on a month to month basis by looking through the cash book and analysing the breakdown of income and expenses

The disadvantages of a cash book are:

  • If your GST or Vat or Sales Tax is included fully on an invoice amount paid in full then it is possible to calculate the figures from the cash book alone.

  • The writing up of a manual cash book is slightly outdated because of the use of computerised software. Sometimes writi...

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