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Sales / Cash Banked

Question asked by Steven Graham 6 years ago

Hi folks, I've been onto the support team a couple of times today and they have been very helpful but I haven't had my issue resolved and it's likely I'm not describing it well over the phone. I hoped to reach out to the clearbooks community as a last ditch attempt for help.

My problem is with recording weekly sales and cash banked. We are a hair salon and so raising an invoice for every sale isn't possible.

Our sales total and the cash banked is different as we use cash at the till for sundries - magazines, milk, tea bags etc.

My understanding is that the best way to do this is to create a Cash Sales account and do a money in transaction to record the weekly sales (before sundries have come off), at the end of our week, on a Saturday. I then create a Bill for sundries.

So our weekly sales are £1000, and we've spent £20 on sundries. We bank £980 on Monday.

I have created a money in transaction for £1000 into cash sales, and have created a bill for £20 for the spend. I have imported a bank statement showing the £980 banked.

Is someone able to take me through what I do next? I would imagine I need the cash sales to be reduced by the £980 and I'll pay the £20 sundries bill from cash sales as that never hit the bank.

I appreciate anyone taking the time to help as I am completely stumped. Cheers, Steven.

4 Replies

Hi Steven

Again - spot on, the contra account is the best place to keep track of the ups & downs and it makes sure the cash account always reconciles.

At the end of the financial year, unless it was huge and needed investigating, or you know any balance on contra will reverse in the following month, I'd tend to write off any balance on the contra account to sales or purchases in the profit & loss account.

Cheers

Hi Steven

Looks like you are almost there. Yes, pay off the bill from the cash account (Quickpay via the bill is the quickest route), this will leave £980 in the cash account then, when explaining the £980 on the bank statement treat it as a transfer from the cash account.

By the way you don't need to create a bill for the £20, just go to the Money screen and hit "Money Out" on the cash account and record the £20 that way as a transaction.

Many thanks Paul - you took the time to explain this to me previously but I wasn't quite clear on the transfer part of it.

Just as an aside, we have some discrepancies with the till - over some weeks, down some weeks, by small amounts. It evens out over the year, but to keep things balanced via the bank and cash account, am I best to transfer the balance to the contra account I have set up so that the Cash Sales is always zero after banking?

eg £1000 Sales, spent £20, £979 banked - till is £1 down so £1 left in Cash sales - transfer to contra? The following week, £1000 Sales, spent £20, £981 banked - till is £1 up so transfer to contra wiping out previous week discrepancies.

This way I can keep tabs on discrepancies via the contra account.

I appreciate that this is more of an accounting questions so no problems if you cannot give advice.

Steven.

Hi Steven

Again - spot on, the contra account is the best place to keep track of the ups & downs and it makes sure the cash account always reconciles.

At the end of the financial year, unless it was huge and needed investigating, or you know any balance on contra will reverse in the following month, I'd tend to write off any balance on the contra account to sales or purchases in the profit & loss account.

Cheers

Many thanks again Paul! Steven.

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