How to keep a cashbook

A cashbook records all payments and receipts. The headings you use will depend on the type of business you run and should describe your most common transactions.

An up-to-date cashbook helps you:

  • Track how much money is coming in and out of your business.
  • Determine what you have spent the money on.
  • Plan and save.
  • Prepare your end-of-year financial accounts.
  • Reduce your accounting costs.

A cashbook also allows you to:

  • Add 'cash' transactions that didn't go through your bank account.
  • 'Split' transactions where you have business and private components, like your vehicle expenses.

You can learn how to record 'cash' and 'split' transactions at a free GST workshop.

Download our free cashbook template.

There are a wide variety of accounting software programmes available. We can't recommend a particular programme, so if you want to use this method of recording, please talk to your accountant, tax agent or bookkeeper before making a final choice. This will make sure that whichever programme you choose will be compatible with their system's requirements.