Cash Based Organisation

Many organisations are cash based. They receive from their customers' cash, cheques or Credit/Debit card income. They may issue till based VAT receipts but do not send invoices and offer periods of credit to their customers. Examples are shops, pubs and window cleaning type businesses. The system provides some specific functions to allow the recording of cash type transactions, deal with banking, receiving credit/debit card income and any purchases the business makes out of cash on hand.

Cash businesses will need to deal with one or more of the following:

• Recording sales income and corresponding VAT (If VAT registered)
• Recording cash and cheques income
• Recording Credit / Debit card transactions
• Banking of Cash and Cheques and recording the banking
• Receiving credit transfers from the Credit / Debit card company, Direct Debits collections via BACS or Voucher Redemptions from an Entity
• Monitoring Cash on Hand in the business
• Settling business purchases in cash and accounting for them

The system deals with all these functions easily and efficiently.

VAT Registered Organisation recording Sales Income and VAT

The process consists of a number of stages depending on the nature of the organisation

• Record the Sales income and the appropriate VAT in the VAT breakdown screen.
• In the Takings screen record the type and handling of the various tenders, i.e. Cash, Cheques, Card Income
• Record the banking of cash and cheques. Banking's can take place at irregular intervals, and can represent a number of days' takings. The system provides controls to ensure all is accurately managed and recorded
• Record the cash received from the credit card company as the result of card income

Either from a till-roll summary or a manually recorded summary, the details of sales values and the relevant VAT (and VAT rates applied) will be available (If you are not sure contact and discuss with your accountant or advisor). Income and VAT analysis are entered in the VAT Breakdown screen. This is accessed via the Income menu.

Income - Cash/Card Takings - Add VAT Breakdown

Once entered and submitted the system will then display the Add Takings screen; select the relevant VAT breakdown analysis to process as takings. If necessary the takings screen is also accessed via the Income menu.

Income - Cash/Card Takings - Add Takings Breakdown

The Takings screen is then used to record un-deposited Cash and Cheques in the Cash/Undeposited Receipts account as they have not yet been paid into a bank, and therefore are still held on hand inside the organisation.

Credit/Debit card income is recorded in an Anticipated Receipts via Payment Processors Account or an appropriate sub-account until the cash is received from the Card Company or BACS and use bank transfer to record the cash receipt to the relevant bank account.

Note if a suitable Anticipated Receipts via Payment Processors Account does not display in the drop-down list use ADD STANDARD ACCOUNT to add it.

Accounts - Add Standard Accounts

NON VAT Registered Organisation recording Sales Income

The process consists of a number of stages depending on the nature of the business

• Use the Takings screen to record the Sales income together with the handling of the various tenders, i.e. Cash, Cheques, Card Income
• Record the banking of cash and cheques. Banking's can take place at irregular intervals, and can represent a number of days' takings. Liberty Accounts provides controls to ensure all is accurately managed and recorded
• Record the cash received from the credit card company as the result of card income

Either from a till-roll summary or a manually recorded summary, the details of sales values will be available. Cash and Cheques will be recorded as undeposited receipts in the Cash/Undeposited Receipts account as they have not yet been paid into a bank, and therefore are still held on hand inside the organisation.

Credit/Debit card income is recorded in an Anticipated Receipts via Payment Processors Account or an appropriate sub-account until the cash is received from the Card Company or BACS and use bank transfer to record the cash receipt to the relevant bank account.

Sales - Cash/Card Takings - Add Takings Breakdown

Note if a suitable Anticipated Receipts via Payment Processors Account does not display in the drop-down list use ADD STANDARD ACCOUNT to add it.

Accounts - Add Standard Accounts

Dealing with Expenses paid out of Cash on hand

Occasionally expenses may be settled out of cash on hand. In order to ensure proper control a record of the disbursement needs to be recorded. The payment of the expense will be out of Cash/Undeposited Receipts account (as you have not yet banked the funds) To record the payment:

Expenditure - Add Payment

• Ensure details of the Supplier are setup or
• Create Supplier details as the transaction is created
• If you are using Branch/Fund or Activity analysis, they are set up
• Create the Payment Transaction