Running a business: Keeping records
Cashbooks are important records for all businesses to keep track of their income and expenses.
If you are keeping these records electronically, take care to keep adequate back-up copies of the important records (additional disk copies or print-outs).
You must keep these records for seven years from the year that they were created.
Use a cashbook to record all money that your business pays and receives. Include all transactions made by any means, including cheque, direct credit, internet and telephone banking, and automatic teller machines.
At the end of each month, reconcile the cashbook with your bank statement by balancing the payments and receipts in your cashbook with your bank balance.
In a cashbook you record all sales and purchases related to your business each month. These illustrations show how the records are broken down into categories relevant to the particular business.
Click on the image below to get the full size view:
Date published: 18 Jan 2005
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