Introduction  [top]

Advice in accounting and bookkeeping for medium and large enterprises should be done by professionals. Most micro and small enterprise operators do not need a complex accounting system but a rather simple introduction to a cash book and introduction to how to produce and keep records in the form of receipts. Micro and Small Enterprises (MSEs) often face problems with regard to recording their daily transactions. This is due to the fact that most of the operators do not know how to make such records in a simple and easy manner. As a result, many operators find it very difficult to give information on their income and expenses and eventually do not know whether they have lost or profited from their business activities. The absence of recording has also caused some problems in handling customer needs, particularly in maintenance services and also in cases of sales on credit services. The lack of recording also makes it very difficult for the tax offices to levy reasonable taxes that are commensurate with the business activities. As a result, business operators complain on the taxes that are levied on them on the basis of estimation, which they say are too heavy to bear.

Cashbook Format  [top]

The cashbook is very important to show the situation of the business at any time, as it provides both the charges and credits for any given period. The balance column is the difference between the charges and credits columns.

Note: In order to prepare a monthly and yearly overview of inflows and outflows, you should calculate the total of the in- and outflows
at the end of the month and report to the monthly overview sheet. Next month continue with next page.

 
Cash Book with Accounts  [top]

The Cash Book with account gives you the opportunity to systematise sales and costs. In the columns of sales and costs different sales and cost categories can be introduced.

see Cash Book with Accounts

The total gives you the opportunity to calculate the sum at the end of the sheet or the end of each month and to prepare the monthly overview (see next table).

Take the sums from the cashbook sales and costs columns
(see cash book with accounts) and enter to the monthly review.
For the yearly review take the monthly review format and enter the
sum of the twelve monthly overviews.

Cash book and monthly overview would be more comfortable if edited with Excel software and automatic sums.  Download the cash book and monthly/yearly overview with Excel cashbook.xls

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