Cash, banks, receipts and payments
Cash and bank accounting: funds, petty cash (imprest), cash advances, transfers between accounts, cash counts and GoSoft's receipts and payments book.
Treasury controls the most liquid and most exposed asset: money. In GoSoft every till, bank account or wallet is a fund (a detail account in the chart), and every collection or payment goes in or out through one of them.
- Organize the company's funds (cash, banks, petty cash, cash advances).
- Record transfers between funds, petty cash replenishments and advance settlements.
- Perform a cash count.
- Use GoSoft's receipts and payments book.
Types of funds
| Fund | Purpose | Good practice |
|---|---|---|
| Main cash | Receive cash collections | Deposit in the bank daily |
| Banks | Collections and payments by transfer, check, QR | One ledger account per bank account and currency |
| Petty cash (imprest) | Small urgent expenses | Fixed amount; replenished against receipts |
| Cash advances | Money given to an employee for a trip or purchase | Settled with invoices; the balance is returned |
Typical entries
Depositing cash in the bank (transfer between funds)
| Account | Debit | Credit |
|---|---|---|
| Bank | 3,200,000.00 | |
| Main cash | 3,200,000.00 | |
| Equal totals | 3,200,000.00 | 3,200,000.00 |
Creating and replenishing petty cash
| Account | Debit | Credit |
|---|---|---|
| Petty cash | 500,000.00 | |
| Bank | 500,000.00 | |
| Equal totals | 500,000.00 | 500,000.00 |
| Account | Debit | Credit |
|---|---|---|
| Office supplies | 180,000.00 | |
| Transportation and taxis | 140,000.00 | |
| Coffee and refreshments | 95,000.00 | |
| Bank | 415,000.00 | |
| Equal totals | 415,000.00 | 415,000.00 |
Cash advance
| Account | Debit | Credit |
|---|---|---|
| Cash advances (Persona0010 Apellido0010) | 1,000,000.00 | |
| Bank | 1,000,000.00 | |
| Equal totals | 1,000,000.00 | 1,000,000.00 |
| Account | Debit | Credit |
|---|---|---|
| Travel expenses | 850,000.00 | |
| Main cash (balance returned) | 150,000.00 | |
| Cash advances (Persona0010 Apellido0010) | 1,000,000.00 | |
| Equal totals | 1,000,000.00 | 1,000,000.00 |
Cash count
A cash count means counting the cash and comparing it with the ledger balance. If money is missing, record a shortage (expense or receivable from the person responsible); if there is extra, an overage. Do it by surprise and keep a signed record.
In GoSoft, step by step
Define the funds in the accounting settings (section Available funds): each one points to a detail account.
In collections and payments always choose the real fund the money goes in or out of.
Open Receipts and payments to see the funds book: choose dates, unit and fund, and click Show. You will see each movement with its origin, person, narration, receipts, payments and balance.
gosoft.app
Receipts and payments book by fund Use the transfers between funds option to include or exclude them depending on whether you want total flow or only real inflows and outflows.
Reconcile banks every month (see Bank reconciliation).
- Paying expenses straight out of main cash with collections money.
- Using a single ledger account for several bank accounts: reconciliation is impossible.
- Not requiring settlement of cash advances.
You deposit the collected cash in the bank. Is it income?
No. It is a transfer between funds: debit bank, credit cash.
Petty cash of 500,000 has receipts for 420,000. How much do you replenish and which accounts are debited?
You replenish 420,000; each receipt's expense accounts are debited and the bank is credited.
Which GoSoft report shows inflows, outflows and balance by fund?
Receipts and payments.