We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is a Cash Book?

By Alex Newth
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A cash book is a journal, or ledger, in which all business transactions are recorded. The cash book itself is typically organized in chronological order, and the book is routinely compared with bank statements to ensure the book is accurate. Some businesses use two books — one for incoming and one for outgoing money. There are both physical and electronic forms of this book, and some businesses use both at once. Cash books also are used for internal and external auditing, to ensure there is no money going out illegally, and to ensure the government or an affiliate business that all the business statements are accurate.

The cash book itself is organized in a simple way. All records are chronological and are usually written in the book when the transaction is happening, or shortly after the transaction is complete, so the book is as accurate as possible. To make sure the book is accurate, managers will typically check the book routinely, perhaps once a day or once a week, and will compare any bank statements to make sure no transactions were missed and no transactions were fraudulent.

To keep transactions separate, some businesses will use two different cash books. One will be made for all incoming money, while the other will be for outgoing money. For a business with a large number of transactions, this may be ideal, because it will be easier to search through the transactions to compare the records with bank statements.

When the cash book concept started, only paper books were available, but cash books also can be electronic. A physical book may be harder to steal, because a book cannot be hacked, but it also may take up a lot of space. An electronic book takes up little space and usually gives the users tools and graphs to better record and present the cash records. Many business use both physical and electronic books so there are separate records, to make it harder for an employee or manager to steal money.

Aside from keeping track of all business transactions, another important cash book role is to serve as an auditing tool. Audits can be either internal or external; an internal audit is launched by the business that holds the book, and an external audit is launched by another entity, such as the government or an affiliate company. By checking the cash records, comparing the records with bank statements and counting the actual amount of money in the company, managers can discover fraud or misuse of money. Keeping cash books also shows that the company is transparent, which usually leads to more trust in the company.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.