What is a cash book?
Cash book is a magazine or book in which all trade transactions are recorded. The monetary book itself is usually organized in a chronological order and the book is commonly compared with bank statements to ensure an accurate book. Some businesses use two books - one for incoming and one for outgoing money. There are physical and electronic forms of this book and some businesses use at the same time. Cash Books are also used on internal and external audit to ensure that there are no money illegally to ensure that the government or associated businesses are accurate. All records are chronological and are usually written in the book when the transaction is happening or shortly after the transaction is completed, so the book is as accurate as possible. To make sure that the book is accurate, managers usually check the book routinely, perhaps once a day or once a week, and compare any bank statements to ensure that no transactions have been omitted and no transactions were fraudulent. One will maken for all the coming money, while the other will be for outgoing money. This may be ideal for doing business with a large number of transactions because it will be easier to search transactions to compare records with banking statements.
When the concept of cash books was launched, only paper books were available, but money books can also be electronic. The physical book may be harder to steal because the book cannot be attacked, but it can also take up a lot of space. The electronic book takes up small space and usually gives users tools and charts for better recording and presentation of cash records. Many businesses use both physical and electronic books, so there are a separate stroke for employees or manager to steal money.
In addition to monitoring all business transactions, another important role of cash books is to serve as an audit tool. Audits can be either internal or external; InternalThe audit is launched by the company that holds the book, and the external audit is launched by another entity, such as the government or associated society. By checking cash records, comparing records with banking statements and counting the actual amount of money in society, managers can discover fraud or misuse of money. Maintaining money books also show that society is transparent, which usually leads to greater confidence in society.