Set up a cash account

[Tut]

Cash accounts are used to record current transactions involving bills and coins. They are maintained by a business as physical repositories of cash. Possibilities include:

• Petty cash funds
• Cash tills

Enable the Bank and Cash Accounts tab

Before you can create a cash account, you must enable the Bank and Cash Accounts tab. Click Customize below the left navigation pane, check the box for the tab, and click Update:

=> =>

You will see the Bank and Cash Accounts tab added to the left navigation pane:

Create a cash account

Click the Bank and Cash Accounts tab, then New Cash Account:

Define the cash account:

• Name the account so it will be recognizable. The name could include a description, a store’s location, or a clerk’s name.
• Code allows you to set the order in which cash accounts are listed. Enter an integer number. If blank, accounts will display in alphabetical order.
• Currency options will be available if you have set at least one foreign currency. By default, cash accounts are undenominated. But if you specify a base currency, they are assumed to be in your base currency, whatever that is. If you plan to use multiple currencies, or just want your currency symbol to appear on forms and reports, set a base currency. Cash accounts will then automatically be denominated in your base currency unless you edit this field.
• The Starting balance field appears if you are migrating to Manager from a previous accounting system and have set a start date.
• The Inactive box appears only after an account is created. It can be checked if the account is closed. (Cash accounts cannot be deleted from Manager if they have any past transactions, because doing so would eliminate the records of those transactions and affect active Balance Sheet accounts.) If the box is checked, the cash account will not appear in lists for transactions in the Receipts or Payments tabs. The account will be greyed out in the Bank and Cash Accounts tab listing. Edit it to restore to active status.

Example
Brilliant Industries has one business bank account used to receive money from customers and pay suppliers and employees. The business also holds cash on hand to pay for staff amenities and other petty cash expenses. Brilliant Industries creates one bank account and one cash account. It names the cash account Petty cash:

View cash account balances

By default, all cash accounts are combined into an automatic control account named Cash on hand for Balance Sheet reporting.

Example
Robert’s Heating Services establishes a petty cash account to buy small parts and tools. It is listed under Cash on hand:



Robert can drill down by clicking the blue balance to see individual cash account transactions:

Of course, you can also view individual cash account balances directly in the Bank and Cash Accounts tab. Cash accounts can also be assigned to custom control accounts.