Handling Cash Receipts

Set up a plan to keep records quickly and easily every day

By Holly Ocasio Rizzo, Writer and editor, Holly Ocasio Rizzo
Good cash-receipt handling contributes to good cash-flow management. Over time, it allows you to see patterns in your business income, so you can more accurately predict when your cash-flow needs will occur. Your handling of cash receipts also supports information you report on tax returns. To handle receipts effectively, you'll need to take three steps:
  1. Establish a cash-management system.
  2. Track cash receipts daily.
  3. Keep accurate records.

 

Set up a system

Follow a specific procedure for handling cash receipts and keeping records of what came in and how it was deposited.
Try: A checklist from the Small Business Administration can keep your cash-receipt operations on track.

Count it daily

Use a daily summary sheet to account for coins, bills and checks in the cash drawer.
Try: Get daily summary forms at AllBusiness.

Keep accurate records

Keep track daily of cash receipts; your main tools will be duplicate deposit slips and a cash receipts journal.
Try: Staples and Office Depot sell accounting books in which to keep a cash receipts journal. AmSouth Bank shows how to make journal entries.

Put Intuit's QuickBooks to work

Business-accounting software and online solutions keep the records, do the math and formulate reports. Their purchase is usually tax deductible.
Try: Compare products at QuickBooks.

 

  • The task becomes most manageable when you post cash receipt promptly in your accounting journal or software.
  • Keeping records helps you to separate the business income from other income.
  • Accurate accounting of receipts becomes crucial when answering questions from the Internal Revenue Service.