The hardest to track.
WHY CASH IS DIFFICULT
It leaves no automatic record.
WHAT TO DO
Record every cash transaction the same day Issue a receipt for every cash sale Keep receipts for every cash purchase
WHAT TO AVOID
Taking cash from the till for personal use Paying expenses from sales cash without recording it
THAT SECOND ONE
Makes both income and expenses wrong.
HOW TO HANDLE IT PROPERLY
Bank cash takings Pay expenses from the business account
WHY
Every transaction then has a record.
IF YOU MUST PAY CASH EXPENSES
Record the withdrawal and the expense separately.
FOR A CASH FLOAT
Record what is in it and reconcile it.
WHAT TO RECONCILE DAILY
Cash counted against cash recorded.
WHAT A DIFFERENCE MEANS
An unrecorded transaction, or an error.
Find it while it is recent.
WHAT NOT TO DO
Estimate cash takings at the end of the month.
