What Is a Cash Book?

 

A cash book is an accounting record used by businesses to track daily cash transactions. All cash inflows and outflows are recorded in this book in an organized manner. This allows businesses to clearly see the current cash balance and monitor when and why income and expenses occur. The cash book plays an important role in managing and controlling cash flow.

 

 

 

Is Keeping a Cash Book Legally Mandatory?

 

The obligation to keep a cash book was abolished in 1998. According to the Tax Procedure Law, a cash book is not among the legally required accounting books. However, for some businesses affiliated with chambers of tradesmen, keeping a cash book may still be mandatory. Apart from these cases, businesses are not legally required to keep a cash book, but many choose to do so voluntarily in order to maintain financial order and better track their cash movements.

 

 

 

What Is a Cash Management Program?

 

Cash management programs are the digital equivalents of traditional cash books. These programs allow businesses to record all income and expenses electronically and instantly view their current cash balance. By enabling healthier financial monitoring, cash programs reduce the risk of errors and help prevent confusion in income and expense tracking.

Since each business operates in a different sector, cash tracking methods may vary. For this reason, sector-specific cash and accounting software solutions are becoming increasingly widespread.

 

 

How Should a Cash Book Be Kept?

 

A cash book is maintained by recording daily income and expense transactions. The most important point is to ensure that no transaction is missed and that entries are made regularly and without delay. Each transaction should be recorded with its date, and the reason for the transaction should be clearly stated in the description section. This structure makes it easy to access past records whenever needed.

The income section should include the transaction date, description, and the amount received in cash or by credit card. The expense section should contain the same details related to expenditures.

 

 

Why Is Digital Cash Tracking Preferred?

 

Manually keeping a cash book can be time-consuming and challenging, especially for businesses with a heavy workload. Therefore, many businesses today prefer to manage their cash records digitally. Cash tracking can be done using simple tools such as Excel, or through online accounting and cash management programs that offer more comprehensive solutions.

Software solutions with online cash management features allow businesses to view their current cash balance, receivables, and payables on a single screen. This enables business owners and managers to monitor the amount of cash on hand in real time and maintain better control over income and expenses.