Day to Day Cash Management

Simple cashbook

1.   Cash is King – and as such this is one of the most important things you can do when you are a business owner (big or small) is to look after your cash.

2.   That means tracking it. For this we need to set up a simple cashbook.

3.   Business bank account – you should have a business bank account – this can be in your business name or it can be a separate account in your own name. Whichever is easiest for you.  The most important thing is to have only business items going through it. No personal items.

4.   It is good practice to look at your bank daily – this is to ensure you are familiar with everything going through your bank and to make sure that the bank has not made any mistakes. (It can happen 😉)

5.   The bookkeeping process begins by determining what the relevant information about each transaction is. If you download the simple cashbook template.

·        Date – this is the date the payment was made

·        Type – Cash / Cheque / DD / SO / TT

·        Details – put the cheque no or payment reference if applicable

·        Posting No. – Here put in the ‘posting’ number you allocated to the expense/supplier invoice/customer invoice. It is important that the       payment or receipt can be traced back to the receipt/invoice.

·        Name – put the name of the person or company you are paying or receiving the payment from

·        Payment Out – put the TOTAL amount paid out of the bank

·        Receipt In – put the TOTAL amount received to the bank

·        Total – here it is formulated to subtract the payments out and add the receipts in.

·        Details of Receipts In – here you can split your sales receipts into different categories or whatever makes sense to your business.

·        Details of Payments Out – here you can split your payments out into different categories or whatever makes sense to your business.

·        Totals and checks are there to make sure that you have coded all your costs & receipts if applicable

·        Details – here you can put any notes that are applicable as you will forget the details if you need to look back after some time has passed

6.   A new line is entered for each payment/receipt and depending on how many transactions you have this ledger sheet will be totalled at the end of the month/Quarter/year and a new sheet started.

7.   After a few entries have been inputted. Look at the totals in each column and see where the money is going to/coming from. Is this what you expected?

8.   You should be able to get a bank statement or a CSV/Excel download from your bank.

9.   I have included an example which you can delete once you are happy with your system.

10. Remember join in the Facebook group to ask any follow on questions.