The first note is a cash register of the cash inflows and outflows. And the case is just the place we use to store and preserve cash.
Is a professional that a large company carries out operations with cash: payments received and cash expenditures are beyond the control of the extract bank account. It is therefore need a document that takes in order to cash movements: first known case.
Nothing prevents you to keep the first note, not only a record of cash flow, but also of bank transactions. The latter will find them even in the bank statements and you will then periodically check that the balance of the bank corresponds to the balance of your first note. In this case, we talk about first note and not first known case.
Who needs the first note?
First of all need to own you. It is a good idea to have the costs under control and the cash you have on hand to avoid unpleasant surprises, such as running out of cash in hand without knowing why. In addition, your accountant will need it to create your own accounts; why it should deliver it periodically (monthly or quarterly).
How do the first note? Minimum information needed
The first note is a document that contains a table: each row in the table is an operation of input or output.
In each row of the table should be inserted the following information:
- Date of the operation
- Describing the work
- Amount of the transaction:
- In the column have outputs or whether it is an expense
- In the column to give revenue or whether it is an entrance
- Reference of the tax document as the receipt or invoice (it is also important to keep your receipt or invoice)
- (Optional) games out cash: That is, the money transactions that do not relate to cash and cash, as credit transfers.
- The balance of cash after the operation
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When and what should I put in the first note?
When you do the following:
- The collection of a fee related to the issue of a receipt or an invoice
- Payment and / or the receipt of a purchase invoice;
- The payment of a charge such as, stamps, vacation
- The bank cash deposit
- Cash withdrawal (bank or an ATM)
If you want to compile a journal, in the broadest sense of the term, you must also record all banking or credit card.
How often you need to record the movements?
There is no real “tax” constraint on when to record the movement of money; but it is a good idea to do it now or daily to avoid a tedious task of reconstruction of the movements of money when you realize that the recorded balance is very different from the cash found in cash (or other resource).
What are the best tools and software first note?
The simplest tool is a block of paper with pre-printed table. There are many economic and trade. It can also sparseness one yourself, just that the grid over columns with the data we need to register.
It is obvious that use a tool such as the paper has many drawbacks, such as the calculation of the balance: it must be done with the calculator.
The second alternative is to use a spreadsheet (such as Excel software), which returns all the information in a grid and in which we can add some formula to add revenue, sum the outputs and update the total balance. A couple of tips if you have several movements (more than 20 per month): Keep an Excel file for each year and a “worksheet” per month.
To control all operations and to minimize the probability of error, you can use software: Microsoft Excel for example allow you to record the first note, and to store some details that allow us to better monitor movements. For example, allow you to associate a contact with every movement, to record the movements divided by asset (cash, bank, credit card, etc) and categorize payments.