Keeping Tabs On Your Cash

Records Provide Information About profitability To make sound business decisions To set profitable prices To alleviate financial errors To complete your tax forms SLIDE 1

Keys to an Effective Recordkeeping System Simple Easy to understand Reliable Accurate Consistent Provide information on a timely basis SLIDE 2

Checkbook Period beginning balance + Funds deposited - Checks written = Ending Balance SLIDE 3 Bank Statement Period beginning balance + Funds deposited - Checks written = Ending Balance If the checkbook’s ending balance agrees with the bank statement’s ending balance, then you are ready to reconcile

Types of Financial Records Incoming Merchandise/Supplies Outgoing Merchandise or Services Incoming Money (receipts) Outing Money (payments) Equipment purchases and depreciation records SLIDE 4

Incoming Merchandise & Supplies Copies of purchase orders Verified packing lists or receiving logs Inventory sheets or records SLIDE 5

Outgoing Merchandisze/Services Sales slips Return receipt records Work order Credit customers billing SLIDE 6

Incoming Money Cash report Checking deposits Credit customers accounts SLIDE 7

Outgoing Money Check register/canceled checks Petty cash vouchers Invoices (accounts payable) SLIDE 8

Reports Daily cash report Income statement Balance sheet SLIDE 9