Maintain Accounts - Cashbook

This option allows you to add, amend, view and delete cash book accounts. If you are already using the nominal ledger, then these options largely duplicate the Maintain Chart of Accounts options in the nominal ledger. However, in addition here you can define the column headings to use when entering receipts and payments.

Note

Cash book accounts fall into three categories:

Cash accounts, which are the bank accounts, petty cash, till float, and charge card accounts that are to be managed by the cash book program

Income and expense accounts, which analyse the receipts and payments that pass through the cash book accounts. If you are running a sales ledger in conjunction with the cash book, then your income analysis comes from the sales ledger, and you would post receipts to a sales ledger receipts control account (see below). In a similar vein, most of the payment analysis might in fact come through the purchase ledger if that is linked

Control accounts, used to accumulate values against other systems

Examples of control accounts include:

Sales receipts control. If you have a nominal ledger, this is the same as the debtors’ ledger control. If you are not using the nominal ledger, then the movements on this account every month should be checked to see that they agree to the payments figure in the sales ledger control

Purchase payments control. Similar to the sales receipts control, this time the nominal ledger equivalent is the creditors ledger control

Payroll control. Payments made to employees should accumulate in this control account, and should equal the net pay from your payroll(s). If you have a nominal ledger, then the net pay figure from the payroll should refer to this account too, and so it should hold a balance of zero at the end of a period

If you are using the nominal ledger, then you already have a chart of accounts for the nominal, and these account codes are used by the cash book too. See the discussion about code structures in the Overview section to the Introduction chapter above. You are recommended to review your chart of accounts and its structure with your accountant before you start to add any accounts, particularly if you plan to implement the nominal ledger in the future.

Note