Cash Book

Cash Book, Banking Summary and Transaction Analysis

These figures provide us with crucial information that enables us to analyse the performance of the business in the different areas that we operate, to carefully monitor the register balances and the banking. Be up to date and accurate. Management is making decisions in all areas of our operation on the basis of the reports you are providing and it will save time if you are up to date.

The weekly reports that you are responsible for are designed to monitor all aspects of the takings, their balances and the banking. The monthly reports will be produced from your information to assist us analyse the performance of the business in each of the product categories, trade sales and also comparative performance with register balances etc.

Your job will require you to meet deadlines, to explain certain aspects of the weekly and monthly reports, to ensure meticulous records are kept and filing is always up to date.

There are also some general tasks you will have to attend to.


(a) The weekly cash report should be completed every Thursday.
(b) As soon as the accounts receivable clerk has printed out the month end, collate all information required for the end of month financial reporting and prepare the reports. The monthly report must be completed by the 14th of the following month.

Weekly reports

All these reports are defined on the relevant spreadsheet.
Z2 print outs from the cash register every Wednesday and on the last day of the month will save a huge amount of time. Make sure that the Z2 reading is taken on R1 particularly when it is only used on weekends. Make sure you differentiate between errors made on the registers and the errors made with the takings from invoiced goods. These provide us with different information and if lumped together tend to cancel each other out and give us the false impression that all is OK.

Sundry banking. Record all sundry banking on the spreadsheet.

Register errors, banking or EFT differences are determined by subtracting the register readout, money or EFT read outs counted from the amount banked. Thus, differences are positive if EFT summary or money banked is more than EFT slips or money counted.

Explanations of variance
The variance figure is the difference between what we record on the registers and in the invoice payments book as being taken for the day and what actually ends up in the bank. The variance is made up of two basic components, errors with what the cashiers record as takings for the day through the registers and for invoiced goods, and errors in counting and banking the takings.
Your major responsibility once this report is prepared is to explain the differences that occur,

Some areas where problems can occur are:

Armaguard adjustments
The variance figure may occur due to Armaguard adjustments for errors made on the Armaguard summary slips by our staff. Clearly record adjustments Armaguard notify us of. Armaguard mistakes will need adjusting over two weeks, the week they occur and the week Armaguard adjust their cheque.

Mislaid cheques
Cheques, bankcards etc. have, in the past, been mislaid after the registers have been balanced and before banking. A meticulous check of the areas where the money has been counted and behind the safe drawer should be made if the variance cannot be explained.

The staff member who balanced the money and did the banking for the day should have established in the daily cash summary that the money counted out of the registers differed from the amount banked, conducted a search, and then reported the problem to the manager immediately. If this balance is not being done, discuss this with the staff member concerned or the manager. You should be able to trace the variation to the banking for a particular day or weekend and then, from the daily cash summary and the pay-in book, establish whether it is cheques, cash or whatever which has been mislaid. Once again, the staff member who balanced the money for the day should have already done this. Remember – the banking dated for a particular day is related to the previous days or weekends takings so it will be entered onto the spreadsheet for the day prior to the actual date on the pay﷓in slip.

The figure that you enter for the takings for the day from the register print outs into the weekly banking summary should have already been adjusted for returns. If these figures are not correct or have been guesstimated by the clerk doing the money differences will occur.

Sundry banking
Sundry banking is all the money banked which is not takings for the week in question. If it is takings from a week before it can be entered as sundry banking in that week, but not in the monthly summary if it is for takings for that month.

EFT Summaries
Sometimes there are discrepancies between EFT slips counted out of the registers, and the amount shown on the summary slips. Often this is due to the time EFT totals are rung off and errors will be balanced by those in the day before and after.
EFT errors can also be due to the loss of an EFT slip before the registers are balanced. If this occurs there should be a positive register error to explain it.

Monthly reports

You are required to produce two reports at the end of month.
(a) Sales to category, transaction numbers and averages, and an analysis of discounts.
This report analyses sale by product category, discounted sales, and the average sales and cash register performance via returns and mistakes.

The returns in this report must be entered from the returns file in the computer cashbook.

(b) Summary of banking and takings.
You will do a summary of banking and takings for the month, refer to relevant spreadsheet.
This will include your reconciliation of our bank statements, credits to the pay in book and the EFT summaries.

Record keeping

Due to tax laws, banking checks and other problems that will require us to locate your records you must be methodical in the way you file and store your information. Periodically clear your containers of records that we no longer need. Our storage space is limited so keep records only for the periods specified below. The following records must be kept in the places and for the periods as specified.

EFT transaction slips and daily summaries.
All EFT summaries are to be attached to the transactions for the relevant day and in the filing cabinet. These should be put tidily into a dated envelope and stored and after six months can be tossed out.

Register print outs and till rolls
Till rolls are a key method of knowing what has happened in the past and letting staff know that the money is being closely monitored. It is important staff know that the rolls are meticulously stored so it is possible to refer back to them, this will significantly reduce the risk of staff being tempted to start taking cash.
Register print outs, both the daily Z1 and the weekly Z2 must be stored in dated envelopes in date order. Store in an accessible file for three months and then transfer them to a box where they are to be kept for five years. Date the boxes before storing so we know when they can be tossed out.

Till rolls should be kept for three months in an accessible location then put into long-term storage. Periodically check that the till rolls are being stored by the cashiers and not tossed out. Keep some pipe under every register so the most recent rolls can be pushed in one end and the older can be forced out the other. This will make it a lot easier to locate rolls if problems occur.

Manually processed credit cards
The staff member who does the daily cash summary and the banking for a particular day should have filed these in a filing container in date order. The merchant summaries should be attached to the relevant slips and kept for six months before tossing out. Put clear instructions on the filing container and check periodically that these instructions are being followed.

Armaguard summaries
These should also have been stored by the staff member who did the banking in a filing container, which has clear instructions on it in date order for six months.

Bulk cheque listings
The bank pay in cheque listings should be filed in the folder above Lily’s computer (see black folder), after six months place in a box clearly marked and dated and store for five years.

This should be self-explanatory if you refer to the headings and the attached legend.

Monitoring return
Returns is an area where our system is most at risk and requires close monitoring and improving.
It is your responsibility to check the returns book and report any cases where returns have not been verified to the manager.
Make sure that returns slips are being filled in properly.
If one staff member is consistently making errors that require returns this should also be reported.
Make sure staff are not putting returns through the invoiced goods register.

Change bag

The change bag should be checked by the staff member that does the banking on Wednesday and change ordered from Armaguard.

Bank statements

It is your job to reconcile our bank statements weekly and include this in the monthly summary of banking.
Credit entries in the bank statement are checked and marked off against the banking entries on the spreadsheet.
Note – with EFT entries if there has been a refund this will be shown as debit. The debit and credit should equal the figure shown in the spreadsheet.


To reach high office shelves you must use the step ladder provided not stand on chairs.

Sales analysis

1. Ensure bank rec completed to last day of the month

2. Examine sales clearing a/c 4-1900, balance should be less than $100
– allocate this amount to nursery sales

Gen ledger
Date: end month
Memo: reallocation sales clearing
4 1900 sales clearing
4 1900 nursery sales
– check that bal. In sales clearing is zero

Distribute discounts on cash register takings

Go to A/C 4 1950
G/L inquiry
Check for incorrect transactions in A/C
Balance in A/C should be approx $3000 to $5000

A. Print out P/L with year to date (reports)
B. Distribute $ amount according to % for month but add paving % to nursery % ® no paving discount, add turf % cartage % and consultancy % to sprinklers %
C. Calculate discounts to nearest $ and round off in nursery sales
D. General JNL
– Date: end month
– Memo: distribution of cash reg discount
– Debit nursery sales
– DebitSeedling sales etc
– Credit 4 1950 disc on cash reg takings
– No Gst

4. Print “P/L with YTD” from reports
5. Go to – general data
– accounting
– summary 05/06
enter figures for both current month and year to date.
6. Miscellaneous data
– Inquiries card
– Month
– Source – sales
– Deduct R4 entries

A. Invoiced sales
Debtors folder above lilys desk
Analyse sales
Total sales less cash reg sales = invoiced sales
B. R1+2+3 sales, difference between total sales and invoiced sales.
C. Invoices – discounted sales
Invoiced sales less “cash sale – retail”
From analyse sales report in debtors folder
Inquire card 1 cash sale retail source sales total $
D. % of sales = discount sales
total invoiced sales
E. Cash register – total discount
Myob – inquiry register
A/C 4 1950 month
® discounts given $
F. no of transactions – figure from list taken separately from weekly Z2 readouts
G. Average sale – R1+2+3 figure ¸ no of transactions.
H. Register errors from weekly cash book totals


General ledger
Inquiry reg
Cheque Account
Use Account
Date for current month
Source Journal
Total Debts

To do inv. List

Index to reports
Sales (customer summaries)
All customers – change date – ok
Click on “10#” heading on blue line in report
Page down until inv. Number appears
Check off on screen or print
When finished
Not save
Close excel

Check Total R4 repayments (R4 book to myob receipts)

Print statements

Statements for account customers
Print statements
Statement type
1/7/99 to “end month” “31/7/99”
All customers
Cross off “x” for cash sale retail and for cash sale trade

Statements for cash sale – retail – trade
Print statement
Selected customer

Blue tag
Cash sale – retail
Use customer

Print statement
Selected customer

Blue tag
Cash sale – trade
Use customer

Receivables Reconciliation

Index to reports
Receivables reconciliation (summery)

Write out on a piece of paper:
Opening balance
Plus invoices
Less receipts
Closing balance

Fill in:
From last moth reports
From sales analysis total
R4 total
From receivables reconciliation

Check that additions work

Analyse sales – % disc sales

Index to reports
Anaylse sales (customer)
Select month ie july etc

R4 GST invoice totals + cartage ¸ 10 = GST

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