How to keep a cash book: cash in, cash out and running balance
Short answer: a cash book is a list of every cash in and cash out, in date order, with the balance after each row. Start with the cash you have now as the opening balance, write one row each time cash comes in or goes out (date, amount, short note), and check the last balance against the cash in your hand at the end of each week or month.
1. Write down the opening balance
Count the cash you have today and write it as the first row. Every balance after that is built on this number, so count carefully.
2. One row for each cash movement
Each row needs a date, an amount marked as cash in or cash out, and a short note: lunch, taxi, sale, change from the bank. Keep notes short and use the same words each time so they are easy to search later.
3. Keep a running balance
The balance after each row is the previous balance plus cash in, or minus cash out. This is what makes a cash book useful: you can see how much cash you should have at any point in the past, not only today.
4. Write it the same day
Most cash book mistakes come from entries written days later from memory. A two-minute check every evening is enough.
5. Check against the real cash
At the end of each week or month, count the cash and compare it with the last balance. If they differ, look for a missing row, a row written twice or a wrong amount.
6. Keep separate books for separate cash
Do not mix your own wallet with a shop's petty cash or a club's fees. One book per pot of cash keeps each balance meaningful.
7. Close the month and carry the balance over
At month end, the last balance is the closing balance. It becomes the opening balance of the next month, so the new month starts from the right number.
Doing this with Cashleaf
Cashleaf works like a paper ledger on your phone. Tap + Cash in or − Cash out, type the amount on a big keypad (today's date is already filled in) and pick a recent note as a one-tap chip. Every row shows the balance after it, back-dated entries slot into place and update the balances after them, and last month's closing balance carries over automatically. You can keep several books and see their total on one screen. There is no ad on the entry screen and no sign-in.
FAQ
What is the difference between a cash book and an expense tracker?
A cash book records every cash in and cash out in date order and shows the balance after each row. An expense tracker usually sorts spending into categories and budgets. If you want to know how much cash should be in the drawer or wallet right now, a cash book is the simpler tool.
How often should I write in my cash book?
Every day you handle cash. Writing it the same day is what keeps the balance right; a short evening check works well.
My cash book balance does not match the cash I have. What now?
Look for a missing or duplicated row first, then a wrong amount. If you cannot find it, add one row for the difference with a note such as 'unexplained difference' so the book matches the cash again.
Get Cashleaf, a cash book with a running balance (Google Play)
← How Cashleaf keeps a running balance, carry-over and backups for each cash book