Cashbooks are simple accounting books that are used to record basic information about cash receipts and payments. Once available in hard copy form only, they are now often included in different types of money management software. Providing an easy way of keeping up with how much money is coming in and what bills are getting paid, this book can be effectively used by just about anyone.
The design of the sheets in a cashbook is essentially a series of columns. Like any accounting book, there is room provided to add titles to each column. This allows the end user to decide how much information about each transaction will be entered into the book. Generally, the date of the transaction, the amount, source of the cash in or the recipient of the cash out, and the running balance of cash on hand are considered basic. Some users may prefer to also include a description column that allows more details about the reason for the transaction.
Many office supply stores still carry the basic format. As a hard copy that is easy to keep around the home, it is a great and inexpensive way to keep up with the flow of cash into and out of the household. The cashbook can make reconciliation with the household budget a simple task, since it is possible to code each transaction to tie back easily with each category in the home budget.
Along with the traditional hard copy version, many financial planning and budget programs will include a basic electronic template for tracking cash. Since the device is relatively easy to understand, even people who consider themselves to be unable to keep up a real accounting record will typically find that making entries is not difficult at all. Often, the software will offer tools to help customize the document to the needs of the end user. This helps to make it ideal for use in the home or with a small business.
