Dealing with cash

Cash could relate to cash actually held in petty cash, a float or till.  

This is the cash the business owns directly.  It shouldn't be confused with cash that you may hold to pay for business expenses on it's behalf.  These should be classified as expenses and recorded differently.



Clever Accounts simply treats cash as another bank account.  This means that if you spend the cash on purchases for the business you enter a bank payment to record the payment from the cash float or till.


Recording cash paid into bank or taken from bank account

When you pay in cash to the bank (from the float, till or petty cash till), or when you bank a cheque for cash, you need to enter that transaction as a bank transfer rather than a bank payment or receipt.  This is to ensure the cash is not double counted in the accounts,

Checking your cash balance

A useful regular check is to ensure the cash balance showing on Clever Accounts is the same as the cash balance in the till, float or petty cash tin.  If the totals do not match then you have not added all the purchases you have made from the cash amount, or you have not made sufficient transfers into or out of the bank.