Cash payments can easily be forgotten because they may never appear in the business bank account.
Whenever a customer pays in cash, record the payment immediately. Include the date, amount, customer name, and what the customer purchased.
Provide a receipt when appropriate and keep a copy for your business records.
If the cash is later deposited into the bank, do not count it as new income again. The income happened when the customer paid. The bank deposit is simply the movement of that cash into the account.
Business purchases made with cash should also be recorded. Save the receipt and note where the cash came from.
Avoid using cash collected from customers to make unrecorded purchases. This creates missing incomeand missing expenses at the same time.
A simple daily cash log can help. At the end of each day, compare the cash received, cash spent, and cash still on hand.
Cash should receive the same attention as payments made by card, check, or electronic transfer.
