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What is a Cashbook?

Cashbooks are used to record cash receipts and payments.
In addition to the traditional cashbook, there are computer programs that allow users to keep track of cash flow electronically.
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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 24 October 2014
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Cashbooks are simple accounting books that are used to record basic information about cash receipts and payments. Once available in hard copy form only, they are now often included in different types of money management software. Providing an easy way of keeping up with how much money is coming in and what bills are getting paid, this book can be effectively used by just about anyone.

The design of the sheets in a cashbook is essentially a series of columns. Like any accounting book, there is room provided to add titles to each column. This allows the end user to decide how much information about each transaction will be entered into the book. Generally, the date of the transaction, the amount, source of the cash in or the recipient of the cash out, and the running balance of cash on hand are considered basic. Some users may prefer to also include a description column that allows more details about the reason for the transaction.

Many office supply stores still carry the basic format. As a hard copy that is easy to keep around the home, it is a great and inexpensive way to keep up with the flow of cash into and out of the household. The cashbook can make reconciliation with the household budget a simple task, since it is possible to code each transaction to tie back easily with each category in the home budget.

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Along with the traditional hard copy version, many financial planning and budget programs will include a basic electronic template for tracking cash. Since the device is relatively easy to understand, even people who consider themselves to be unable to keep up a real accounting record will typically find that making entries is not difficult at all. Often, the software will offer tools to help customize the document to the needs of the end user. This helps to make it ideal for use in the home or with a small business.

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Discuss this Article

anon967252
Post 16

What is the difference between a cash book and a cash ledger account?

anon356022
Post 15

What is the purpose of the cashbook?

anon355730
Post 14

Can a Cash book be used as a tool for management?

healthy4life
Post 12

@Kristee – You could use it in place of a transaction register. I used to buy new registers from the same place I bought my checks every time I ran out of space, but now, I use a cashbook.

It seems to have a lot more room. Since I use my debit card for just about every purchase that I make, I use up the lines in a regular check register rather quickly. A cashbook lasts much longer.

Kristee
Post 11

My friend bought me a cashbook for keeping track of my expenses when I started trying to sell my art online. I planned on listing and categorizing all my expenses, along with all of my profits, so that when tax time came, I would have all my stuff in order.

Sadly, I never sold any of my art, so only one page of my cashbook has anything written on it. I listed the price of the canvases, brushes, and paints that I bought. The section where I had planned to record my sales remained empty.

I am sort of at a loss as to what to do with the cashbook now. Using it for anything else seems like accepting defeat, but I hate to see all that paper go to waste.

giddion
Post 10

In my opinion, the best cashbook is the kind you can hold in your hand and write in with a pen. I have been keeping track of my transactions with this type of cashbook for decades, and I plan to continue using it forever.

I dislike the idea of keeping track of my account balance with a computer cashbook. If anyone hacked into my computer, they could see all the information, and if it were stolen, I would lose all my records.

anon153341
Post 9

a cash book, as it were, records the receipt and payment of cash. it also shows the bank balances at any time.

hence, it could be used as a managerial tool as it could help management to track the inflow and outflow of cash.

anon81599
Post 7

Cash book can be defined as a book of account, used for recording cash receipt and cash payment.

Cash book can be used as a tool to management, by taking advantage of the available cash receipts and cash payments. Since it provides a statement of debit records and credit records, it can be used to manage cash out-flow and cash in-flow. Ferdinard O. B.sc. Economics, Benson Idahosa University,Benin City, Nigeria.

anon33607
Post 3

How can cash book be a tool to the management?

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