Hello
I am starting to do our year end. We have about £1000 in cash that we weren’t able to pay into the bank at our year end. How do I account for this?
Any help greatly appreciated
Regards
Helen
Where is the cash as of year end (e.g. is it in the till)?
Hi Mathew
Yes it’s in the till.
Regards
Helen
When customers pay you in cash you would normally handle this by logging the payment from the customer into a cash “bank” account - this is what happens if you use the cash register tool, for example. When you deposit the cash at the bank the “money in” to your current account is a bank transfer from the cash account - it isn’t payment from a customer at this stage, you already did that when you originally received the cash.
So any cash you have received but not banked by year end simply shows on your balance sheet as an asset along with your other bank balances, you don’t have to “do” anything special to account for it. At any given date the cash bank account balance should equal the money in the till. If you pay a supplier using some of the cash instead of banking it that’s fine too, you just log the purchase payment from the same cash bank account.
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Thanks Ian. We have a Cash Account set up. After I have uploaded our bank statement into Quickfile all our cash payments are transferred to the Cash Account and card payments go to a merchant account. We then use the monies in both of these accounts to pay of invoices that we created based on our Z reports. Doing it this way means I won’t normally be accounting for cash that came in say the end of June until the beginning of July. Am I doing this wrong?
Hi, if I understand correctly by the end of the fiscal year you have 1,000 in the cash account which is correct, you don’t need to do anything else, this amount will appeared in the balance sheet as an asset (cash in hand)
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Thank you for your quick reply.
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