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Wednesday, October 17, 2007

Cash book very Important for a business:



Cash book:
==========

Cash book is the final record of all money that come into and goes out of your business .We can see the cash flow frow the cash book.It is a important for a business.


How to prepare it:
  1. You sohuld prepare a long book and seprate to few categori.
  2. You should collect all the receipt ,bank statement, copy of your invoice ,copy of Delivery order,supplier invoice,copy of your own invoice ,all the copy of the payment made or receive.
  3. THen you can seprate to two section in you cash book :Payment and receive
  4. FIll in the data accordding the receipt or copy of payment and your income.
  5. According wheather is by Cash ,bank or credit card.
  6. At last day of the month calculate the balance.
  7. Remenber income put in debit side(left hand side), payment put at kredit side(right hand side) and remember record the detail with the amount.

Advantage to prepare a cash book:

========================

  • You can eassily know where is you cash flow
  • You can check back where your money come and where you money go
  • You can take to referrece the monthly bank statement .See which cheque is cancelled or..................
  • You also can reference the debt balance with cash book.
  • Cash book is important to make one accaunt for your business.

WIthout cash book we cannot monitor our business and can't calculate our nett profit and asset .Are you already prepare cash book for your business?

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