Go to Banking, click Add Account, and choose Cash Account as the type. Give it a descriptive name such as “Head Office Cash” or “Reception Counter Cash.” Enter the opening balance based on the physical cash on hand when you start using Zoho Books. Once set up, the cash account is available as a payment or receipt method whenever you record a transaction, just like a bank account.
When a customer pays in cash, record a Payment Received in Zoho Books and select the cash account as the deposit account. When you pay a vendor or expense in cash, record the payment and select the cash account as the source. Over-the-counter businesses like retail shops and restaurants may have dozens of cash transactions per day, and many use Zoho Books’s import feature or a linked POS integration to batch import daily cash sales rather than entering each transaction individually.
Unlike bank reconciliation, which uses an external bank statement, cash account reconciliation in Zoho Books is done by comparing the Zoho Books cash balance against a physical cash count. Count the physical cash in the petty cash box or the till, compare to the Zoho Books cash account balance, and investigate any difference. A difference indicates either an unrecorded cash payment or a missing entry.
A cash account in Zoho Books tracks physical cash transactions, such as cash collected from customers and cash paid for petty expenses. It appears on the Balance Sheet as a current asset and is reconciled against physical cash counts.
Go to Banking, click Add Account, select Cash Account as the type, enter a name and opening balance. The cash account is then available as a payment or receipt destination for all transactions.
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