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• The writing up of a manual cash book is slightly outdated because of the use of computerised software.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