About the author               Product Choice        Download & Install        Bulletin        FAQ        Q & A                  Video - by the author

( Methodologies )

( Other's reviews )

Accounting Tutorials

Cashbook's Entering Method

What is a cashbook?
In general a cashbook is a book in which a record of cash incomings and outgoings is kept.
In our products the cash is defined as including cash, deposits, credit cards and all other cash elements to treat them together in the cashbook, based on [cash + deposits - credit cards = net cash]. Also, the cashbook in our prodcuts is a journal (of double entry bookkeeping) treating cash transactions in contrast to the general journal treating noncash transactions.

Differently from Best Accounting, Best CashBook does not have the general journal. However you can broaden it to treat all your transactions as you wish by widening the range of deposits and credit cards.
You can define the range of fund to manage in the cashbook, based on [cash + deposits - credit cards = net cash]. According to how to influence "net cash" a transaction is treated as follow:
     increase       1. In (Incoming).
     decrease      2. Out (Outgoing).
     no change    3. Tran (internal transfer).

1.Cash definition
   Cash definition is to define the range of fund to manage in the cashbook.
     a)Other cashbook
        Other cashbook confines the fund range to cash [cash = fund] and
        treats only cash incomings and outgoings.
     b)Best Accounting - for Business
        Best Accounting defines [holding cash + current deposits - credit cards = fund] and
        can treat all usual incomings and outgoings in the cashbook to increase efficiency.
     c)Best CashBook - for Home or Small Business
        At home Best CashBook defines [holding cash + all deposits - all debts = fund] and
        can manage all deposits and all debts in the cashbook.
        At small business Best CashBook can be used as narrowly as managing a trust fund
        or as widely as managing all assets and liabilities by means of MyCash function

2.Cashbook entry
   You must select one of [1.in, 2.out, 3.tran] in type
     a)Other cashbook (fund=cash)
        Cash-increasing transaction is treated as [1.in] and Cash-decreasing transaction is
        treated as [2.out]. There is no [3.tran].
        Depositing cash in a bank and settling a card result in cash decrease and treated as [2.out],
        withdrawal results in cash increase and treated as [1.in].
     b)Business(fund=holding cash + current deposits - credit cards)
        Depositing cash in a bank, settling a card and withdrawal result in not change in net fund size
        but change in mix of internal elements, so treated as [3.tran].
     c)Home(fund=holding cash + all deposits - all debts)
        The wider the fund definition is, the wider the fund range to manage in cash book is.
        You at home can define the fund range as widely as you wish and manage deposits and debts.

        If you want to manage a bank loan in the cashbook, you register a borrowing account
        in the range of credit card codes(300~399) and treat it like a credit card.

        borrow cash from a bank
        ==>type: 3.tran         Debit) holding cash 1,000,000         Credit) bank borrowing 1,000,000
        description : borrowing increases as much as cash and net fund does not change,
                          [3.tran] is selected and 1,000,000 is entered in both incoming and outgoing
                          to show that there is such a transaction, not affecting fund size.

- Alfred S. H. Lee -

I am a non-accountant, still difficult to understand ==> click here
I am an accountant, still not very well ==> click here