A Cash book is the continuous recording of the income and expenditure of a business cash drawer. It documents the individual cash movements and makes it traceable how the respective cash balance develops.
What is a cash book?
A Cash book records cash movements in a business cash register. This can include, in particular, cash receipts, cash expenses, as well as business deposits and withdrawals.
The Cash book is therefore used to systematically document cash transactions and makes it possible to track changes in the cash balance on the basis of the recorded transactions.
What information does a Cash book contain?
A Kassenbucheintrag entry typically contains details that allow the respective cash transaction to be traced. These include, for example:
- Date of the transaction
- Nature or description of the process
- Amount of income or expenditure
- Reference to the corresponding document
- the resulting cash balance
cash in hand
Cash in hand refers to the physical cash balance of a business till. This balance changes continuously through cash receipts and disbursements.
The records must make it transparently clear how the reported cash balance is derived from the individual cash movements.
Who needs to keep a Cash book?
Taxpayers who are required to keep books must record cash movements in a Cash book or in a form approved for this purpose. Pursuant to Section 146 AO, cash receipts and cash disbursements must generally be recorded daily.
Whether a formal Cash book is required in an individual case and what form of record-keeping is permissible depends on the respective accounting and record-keeping obligations as well as the nature of the Cash record-keeping.
Cash book and cash register – what is the difference?
A Cash book refers to the recording of cash movements. A cash register or an electronic point-of-sale system, on the other hand, is a technical system for recording business transactions.
An open cash register is also not the same as Cash book. The respective recording requirements apply to the various forms of Cash record-keeping.
Cash book and bank transactions – what is the difference?
The Cash book documents cash movements. Bank transactions on the other hand, relate to business transactions and movements on bank accounts.
Both areas concern different means of payment, but can be part of a company's ongoing bookkeeping.
What role do the GoBD play?
If cash registers are kept or stored using electronic systems, the requirements of the GoBD to take account of transparency, order and immutability.
In addition, the respective [documents/records] apply for the retention of the associated paperwork. Retention periods.
