6 Tips for Managing Cashbooks

A few tips for managing your cash book:-

Keep up to date

Don’t fall too far behind, little and often is the best way to stay in control. Touch base with your books as often as you can.

Be methodical

Organise your source documents ahead of data entry, in the order that you are going to put the data in. This will speed up the process and keep you in control. So get all your payment source data in date order, work through this and then apply the same approach to your income. Order and control are everything in any accounting process.

Reconcile to bank statements

This is the way you’ll know you are accurate, by tying back to 3rd party documentation. Do this as often as you can. If you have physical cash in hand, keep counts of this and tie it back to the balance on the system.

Think about your coding structure before you start entering data

Think about how you want to code your income and expenditure and set this all up before you start entering data. This will speed up the process considerably, especially if you have a lot of new income/expenditure types.

Enter as much detail and reference data as possible

This can prove invaluable when you or your advisor will need to check or understand entries at some future point in time. Don’t be afraid to go a bit over the top in your descriptions, less is definitely not more when it comes to this! Also, use the reference boxes your software provider offers to capture as much information as possible about each transaction.

Review your work

Check that the data you’ve entered makes sense and is coherent with stuff you’ve entered previously. If you check the various categories of expenditure you may pick up problems or inconsistencies that could be business issues or posting errors on your part. Either way, they need to be addressed – use your system to read your business.