SEARCH, INDEX, UPDATES, CONTENTS, bookkeeping - analysed cash book
There are many possible designs for an analysed cash book. This page is only an outline of one possibility. Analysed cash books can be written in a bound book, on loose leaf paper, or in a computer spreadsheet.
A business which is not registered for VAT will not identify input and output VAT within each transaction, and will analyse the 'total' cost but this example is for a VAT registered business.
The general format is -
Explanations
Where there are a lot of routine entries, there is no need to add an
explanation as shown on the right hand side, however it is very worthwhile
adding narrative explanation to any unusual entry, such as the van purchased
above on Hire Purchase. The more time we spend linking up HP documents with the
deposit paid, looking for an invoice to find out why you have made a payment to
XYZ Supplies etc. the more we will want to charge you as accountancy fees.
Down casts and cross casts
'Cast' is a term accountants and bookkeepers use for adding up. Each column
adds up downwards (perhaps each column cast down is a better phrase!). Each line
also casts across. Total less VAT always equals Net. The four 'analysis' columns
to the right of Net also add up to the Net column total - they must because we
are only adding up the same figures in a different way. If your figures do not
down cast and cross cast, because perhaps you have forgotten to put a figure in
an analysis column, or because you have written £450 as £540, the more time we
will spend checking your figures and the more we will want to charge you as
accountancy fees.
Multiple accounts
The payment cash book below uses the same information as the example above, but
explains the HP transaction within the analysis columns.
It also has a 'Bank' and a 'Cash' column, and could have a 'Credit card' column
as well, in place of the 'Total' column. This enables multiple sources to be
recorded in one cash book. It allows the user to know the total spent on 'Goods'
in the month without referring to other separate cash books for cash and credit
card transactions. As you will see a 'cash' book' can refer to bank and
credit card transaction as well as petty cash.
Excel template
As in these examples, it is normal to write the totals at the bottom of the
lists, and to carry those totals forward to the top of the next page if
applicable. If you choose to keep your cash book in a spreadsheet, it is easier
to put those totals at the top of the sheet. You can also include check cells to
ensure that the figures do cross cast. We have prepared an Excel template that
you may choose to adapt for your own use, but please read the instruction sheet,
CashBook4.xls.
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 2 September 2006.