Treating Cash on Hand as income account

1

I’m managing a ledger for a small business and not really a pro so excuse me here.

I created a Cash account in Manager which I have associated with all incoming payments (receipts) and all outgoing payments to suppliers.

From what I understand, all outgoing payments subtracted from incoming payments in total should be income in basic terms, but the amount left in cash shows up under Assets section in the Summary area and not in the Income section. Income section appears blank.

How can I set it up to show the difference as Income in manager? thanks guys.

2

I cannot understand clearly but I try to explain…

Since you don’t use invoices you should only account receipts vs revenues and payments vs costs. You will have a net profit of exactly revenues minus costs on one side (P&L) and an equivalent cash in hand on the other (Assets of the BS).

3

I fixed my issue, I had not selected an account (income) for all the receipts so it was not showing up in income.

By the way,
Is this an acceptable model? payment vs costs? i mean not having invoices.

4

Yes, absolutely. You should disable (or leave disabled) the Sales Invoices and Purchase Invoices tabs. And you should choose cash-basis accounting.

But are you really operating with physical bills and coins? If you are using a bank account, that should be set up as such, rather than a cash account. You can read the Guides about all this.