IMPORTANCE OF CASH BOOK FOR BUSINESSES
The transaction can take place both in cash and on credit. In a business, they are recorded in different books depending on the nature of the transaction. Cash transactions are usually recorded in a cash book. The cash book is a book in which all cash transactions in a business are recorded in a chronological order after analyzing the transaction.
In the accounting system, the importance of cash books is immense. One of the reasons a cash book is important is: when cash transactions are recorded in a journal a lot of time and labor is involved. But using a cash book avoids this as all cash transactions are directly recorded in a cash book which is in the form of a ledger. This helps to save time and the labor costs.
Moreover, a cash book also helps the manager to view the cash and bank balance at any point in time as it is the established method of recording all financial transactions. In every business the number of cash dealings is generally large. Since cash can be simply stolen, the cash record of a business must be up to date. For this very reason, businesses should use the Udhaar cash book app that manages your cash in and cash out. With a cash book app you don’t need a calculator or notebook to manage your cash because a cash book gives real time calculations.
Furthermore, the cash book provides all information regarding total receipts and expenses of the business at particular periods. With Udhaar cash book app, it is possible for businesses to get daily, weekly and monthly reports at their fingertips. Plus, they can easily create separate books and ledgers for all businesses. They can manage everything from Udhaar cash book app. Finally, it can be said that a cash book is a book of record and a part of the ledger with Udhar Cash book playing a vital role in it