2.0 Cashbook

The cashbook has been designed in such a manner that you can easily do your own bookwork and VAT/GST/TAX returns during the year. You will still need to have your accounts prepared by a qualified accountant at the end of the year. A printout of the cashbook will give your accountant all the information required to prepare your accounts with minimal effort.

2.1 Setting Up the Cashbook

To access the Setup Wizard, select "Setup Wizard" from the "Miscellaneous" option on the "Main Menu" screen. The cashbook can be setup with the Setup Wizard (Chapter 1), or you can modify the Bank Account or Category details by selecting them from the "Cashbook" menu (at the very top of the screen).

Make sure that the Bank Accounts, and the Categories are correctly setup before continuing (see Chapter 1).

2.2 Entering Your Initial Cashbook Data

Before entering data into the Cashbook, you should check that you've set your Opening Balance(s) up correctly. To check/change the Opening Balance for your Bank Account(s), click on the "Cashbook" menu (at the very top of the screen) and select "Bank Account Setup".

The easiest and more reliable way to get data into the Cashbook is to import your bank statement from your bank's website directly into the Cashbook:-

  1. Login to your bank's website to export/download your bank statement. Pick a decent date range if possible, such as one or two months worth of transactions. Your bank statement needs to be a .QIF type of file or it won't import into Cashbook.
  2. After downloading your bank statement from your bank's website, click on the "Import" button on the toolbar in Cashbook.
  3. Browse to where you saved your .QIF file.
  4. Select the .QIF file to import, then click "Open" to start importing it.

You can also manually add data into the Cashbook as follows, if necessary:-

  1. Select a bank statement from which you want to start. It is best to have one or two months worth of transactions.
  2. Enter all the items on the bank statements into the cashbook. The best way to get your data into the Cashbook is to import your bank statement from your bank's website. For help doing that, go to the "Help" in the software and search for "Importing a Bank Statement".
  3. If you are manually entering data (i.e. not importing a bank statement), tick each transaction in the "B" column (to indicate that it's reconciled).
  4. Check that the "Bank Bal" (bank balance) is correct.
  5. The hard part of setting up the cashbook is now complete.

2.3 Adding Transactions to the Cashbook

Open the Cashbook by clicking the "Cashbook" button on the main screen. All entries are sorted by date. The Cashbook will be opened at the latest transaction date for the account selected, ready to accept a new entry.

If you have more than one bank account, select the account to view by clicking on the "Account" dropdown menu at the top left of the screen.

The "Bank Bal" (bank balance) total should always match your actual bank statement balance provided the data has been entered correctly. The "Bank Balance" total is comprised of all the transactions in the Cashbook which have been ticked in the "B" (banked) column (which indicates they're reconciled). You should always aim to avoid having any unticked transactions so your balance is always correct.

If you still bank using cheques, the "Cashbook" (cashbook balance) total is the hypothetical bank balance if all cheques and deposits are presented to the bank. The "Cashbook Balance" will help you prevent bouncing any cheques, because you will know exactly how much money you have available. The "Cashbook Balance" total is comprised of all transactions in the Cashbook, both ticked and unticked.

Date

Enter the date of the transaction. If you're entering dates in different date order, they will automatially be re-sorted into the correct date order when you exit the Cashbook (or if you click the "Recalc" button on the toolbar). You can easily copy the date from the record above by pressing CTRL " (the quotation key).

Ref

The "Ref" (reference number) can be used for any of the following, cheque number, customer reference number or code for the transaction. You can press " (the quotation key) to enter the previous cheque number plus one. As a suggestion, it may be easier to reconcile with bank statements if the same bank reference on the bank statements are used.

Category

Type in the category or click on the button (which appears if you click inside the category dropdown menu) to list the categories available (using scrollbars if necessary).

Notes

The "Notes" field is used for entering miscellaneous information that you may want to record for a particular transaction. You can press "F2" (on your keyboard) or double click on the "Notes" box to zoom into it.

Income and Expense Amounts

Income and expense amounts should be entered including VAT/GST/TAX. As the income or expense amount is entered, the VAT/GST/TAX rate along with the VAT/GST/TAX amount and net amount will be shown.

VAT/GST/TAX Rate

The VAT/GST/TAX rate can be changed to 0% if VAT/GST/TAX does not apply to the item, type "0" into the VAT/GST/TAX rate box (the VAT/GST/TAX amount and net amount will be updated). If the VAT/GST/TAX rate box is left empty, an error message will prompt you to enter a value.

Line Details

The "Line Details" section near the bottom of the screen provides extra information about the line (transaction) you are currently on. At a glance you can view information such as VAT/GST/TAX Amount, Invoice Details, and Project Details.

The "INV", "On" and "For" boxes are used to link extra information to the transaction. For example, you can link a transaction in the Cashbook to an invoice to mark it as Paid by selecting the invoice number from the "INV" dropdown menu. For this to work, the transaction must first be assigned to an Income category.

Once an invoice has been assigned, you can double click on the "INV" dropdown menu to load the screen for the invoice selected. You can also double click on the "From" dropdown menu to view the details for the contact it relates to.

Project details can also be attached to a transaction for either an income or an expense.

The same double clicking action applies to projects as well as invoicing. Double clicking on either the "Project" or "Project Item" dropdown menu will load the project information for the project selected.

New Transactions

When the VAT/GST/TAX rate has been entered, a new blank line will appear at the bottom for the next entry, and the running total bank balance will be updated.

Banked Transactions

If the transaction has been banked, click on the "B" (banked) checkbox to include it on the bank statement total.

Recalc Button

To ensure the running totals are correct for both the cashbook and bank statement totals, click on the recalc button. The computer will go through each transaction sequentially updating the totals.

2.4 Split Transactions

Split transactions are used to show a series of costs as one entry in the cashbook. An example would be a VISA bill. To create a new split transaction, select "Split" in the "Category" dropdown menu or click the "Split" button on the toolbar. To open an existing Split, either double click where it says "Split" in the "Category" column, or else click the "Split" button on the toolbar.

Enter each item included in the split transaction (for example each item on a VISA bill). When the form is closed, only the totals will be shown in the cashbook line. The information for each item in the split transaction is still stored separately. To view the details of a split transaction, double click where it says "Split" in the "Category" column, or else click the "Split" button on the toolbar.

2.5 Importing Data from Another Program

Cashbook Complete allows you to import your existing transactional data from MS Money or Quicken, or any other program that supports the QIF file format.

The first step to importing a cashbook is to export the cashbook from your current program. Cashbook Complete is capable of importing both 'loose' and 'strict' QIF files.

Click on the "Cashbook" menu (at the very top of the screen), and select "Import QIF File from Another Program". You will be presented with the following screen.

If VAT/GST/TAX is enabled, then make sure that the default VAT/GST/TAX rate is correct. Next, select the date format that your QIF file uses.

When you are ready to begin importing, click on the "Import" button, and select the file you want to import. A screen will now appear that informs you on the status of your import. It will display the account name, the number of main transactions, and the number of split transactions. The time it takes to import will depend on the amount of data that you are importing.

Once the import is complete, a message box will appear stating that the import is complete. Click "OK" on the message box, and then click "Done" on the import status screen.

You will now need to check that the categories have been imported correctly. To do this, click on the "Cashbook" menu (at the very top of the screen) and select "Categories Setup". If the categories look out of place, such as an expense category sitting in the income column, you can shift the category by clicking the "Shift" button on the toolbar. It is advised that you also check the category names. This is due to some names being shortened during the import process because they are too large.

If the import looks unsuccesful, then you can always undo the import by seleting "Undo" from the "Edit" menu at the very top of the screen (before you exit the cashbook).

2.6 Electronic Bank Reconciliation

You can save a huge amount of time with Electronic Bank Reconciliation, by importing your bank statements from the internet. Where the manual reconciliation of a months worth of transactions can take hours, doing it with Electronic Bank Reconciliation can take a few minutes. After getting the first import reconciled, all subsequent imports are like magic. The cashbook will merge your existing transactions with the ones being imported and will then reconcile the transactions for each day. You can set up rules to automatically assign repetitive or pre-coded transactions to certain categories.

Reconciling Against Manually Entered Transactions

All bills that you pay with the "Bills To Pay" screen, all deposits (bankings) that you do with the "Payments Received" screen and all manually entered transactions entered into the cashbook will automatically be reconciled with the bank when you import the bank statement. If you have set up rules to handle the repetitive transactions then there should only be a few <Unassigned> transactions which you need to assign to the appropriate category.

Dates

Please note that with Electronic Bank Reconciliation, the date for each line is changed to the bank statement date when it is reconciled. Suppose for example that you manually enter a transaction into the Cashbook, or post a payment to the Cashbook from Bills to Pay, on the 8th May. If the actual payment is processed by your bank on the 15th May, then when the bank statement is imported, the date is changed from the 8th May to the 15th May, and the "B" (banked) column is ticked.

Importing

To import a bank statement:-

  1. Determine the Start Date   The start date is as follows:-
  2. Save your Bank Statement as a QIF File   Go to your banks web site, log on with your account name and password, and export your bank statement to a QIF file. Save it in your "Documents" folder, and make a note of the file name you saved it as. If you can select several different date formats, then choose the one which is correct for your country. If you have the choice of four digit or two digit years, then four digit years are better. Before exiting your banks web site, write down your Bank Account Balance which you will use in Step 4. If you have difficulty downloading your bank statement, please contact your bank for help.
  3. Import the data   In the Cashbook, click the "Import" button on the toolbar (or select "Import QIF File Downloaded From Internet" from the "Cashbook" menu at the very top of the screen). Select the Bank Account you want to import into. Click on the "Import" button and locate the file you saved in step 2.
  4. Check the Bank Balance   The "Bank Bal" shown at the bottom right hand side of the cashbook screen should now equal the balance shown on your bank's web site. If they are not the same it could be because:-
  5. If your Import was Not Successful then Undo It   If for any reason you are not happy with the import, then you can undo it. Go to the "Edit" menu and select "Undo" (before you exit the program).
  6. Assign the <Unassigned> Categories   After the import you will see a lot of <Unassigned> categories. Assign them to the correct category. If you have a repetitive transaction, then it is a good idea to make a Rule for it, so that it remembers the category you want to use, next time you do an import. The easiest way to make a new rule, is to click on the line in the cashbook that you want to make a rule for, click the "Rules" button on the toolbar, then click "New".
  7. Clean up the Notes   Imported lines usually have a whole lot of junk in the "Notes" field which you can edit or delete if you want to.

2.7 Manually Reconciling the Cashbook with Bank Statements

The easiest way to keep your books reconciled is by importing your bank statements from your bank's website. See the "Electronic Bank Reconciliation" section above.

Open the Cashbook. When you get a bank statement, first check that the opening balance is the same as the current bank balance as shown by the cashbook (in the bank statement box).

Then simply tick each item on the statement and the cashbook as a pair. It is also recommended to also change the date in the cashbook to match the Bank Statement date. If there is an item such as bank fees, interest, or a VISA bill on the bank statement which is not in the cashbook, then enter it into the cashbook. Check that the amounts are correct as you check each item. When you have checked all the items, the cashbook balance should equal the bank statement balance.

Bank Reconciliation Report

A bank reconciliation report is included in the cashbook to list the un-banked cheques and transactions against the current cashbook balance. These are totalled and should equal the current bank balance.

Click on the bank reconciliation button (at the top of the cashbook form to the right of the account number).

Select the account number by clicking on the bank account drop-down box and selecting an account. Click on preview to view the bank reconciliation report on screen, and when satisfied click on the print button.

2.8 Cash Jobs

If you get paid cash for a job you have done, and you don't bank the money, then simply enter a double transaction into the cashbook as shown below:

The income and expense amounts cancel each other out, so the bank balance is not effected. The business received money from a sale and paid it out to you in the form of drawings / salary. The VAT/GST/TAX is still calculated correctly, and the sale is recorded in the cashbook. Please tick the "B" column for these lines, because they have effectively both been banked.

2.9 Cash Purchases

If you purchase an item for your company out of your own money, then you can simply enter it as a double transaction as shown below:

The income and expense amounts cancel each other out, so the bank balance is not effected. The VAT/GST/TAX is still calculated correctly, and the purchase is recorded in the cashbook. To understand this transaction, remember that it is from the point of view of the business. The business had a parking expense, and paid for it by receiving the money from you. Please tick the "B" column for these lines, because they have effectively both been banked.

It is not recommended to put these double transactions into a split transaction, because the nett amount in the main part of the cashbook can look rather odd (even though it is correct).

2.10 Cashbook Reports

Please note that in most cases, only reconciled transactions are shown in the reports.

VAT/GST/TAX Report (UK, NZ, and Australia only)

Make sure that you've reconciled all the transactions in your cashbook. Click on the "Cashbook" menu (at the very top of the screen) and choose "Print VAT/GST/TAX Return". Enter a "From Date" and "To Date" for the report and configure other options such as the "Account" (if applicable). If you would like to preview the report on screen before printing, click on the "Preview" button. Click on the "Print" button when satisfied. Information from the cashbook is used to generate the totals, so it is very important that the cashbook is up to date and all transactions have the correct category and VAT/GST/TAX rate.

The layout of the VAT/GST/TAX report is similar to the one issued by HMCE/IRD, so all you need to do is copy the figures across.

You may need to enter some adjustments to the VAT/GST/TAX return as specified by your accountant. Cashbook Complete cannot do this for you, so these are your responsibility to add as required.

Rounding (New Zealand Only)

The "Total Sales" and "Total Purchases" boxes are calculated as the respective GST amounts multiplied by three, then divided by 23 (for a GST rate of 15%). This figure will be slightly different to the actual Total Income and Total Expenses figures due to rounding when fractions of a cent are truncated. For example, the GST on a $10.00 sale is 130.43 cents. This is rounded to 130 cents of GST which if multiplied by 23, then divided by 3, gives an equivalent sale value of $9.97.

Summary Report

The Summary Report summarises each category for the period entered. Each category is sorted into the three main sections (Income, Expenses, and Balance Sheet).

Detailed Report

The Detailed Report gives a detailed list of each transaction by category, sorting the categories into the main sections of Income, Expenses, and Balance Sheet.

Transaction Report

The Transaction Report lists each transaction in date order, showing complete details (expanding all "Split" entries).

Income and Expenses Graph

The "Income and Expenses Graph" shows all the income and expenditure for a given period. It does not include balance sheet items (see Categories). The difference between the income and expenses is the cash profit.

2.11 Bills to Pay

If you normally import your bank statements into the Cashbook, then the Bills to Pay screen is optional because your expense transactions will be imported automatically. However, if you're using an "invoice basis" accounting method (New Zealand only), then you must use this screen to correctly account for all expenses. Therefore, we recommend that you only use the Bills to Pay screen if you:-

Adding a New Bill to Pay

Select the appropriate account for the bill from the "Account" dropdown menu. On a new line, enter the date the bill is due into the "Date Due" box, the invoice date in the "INV Date" box, the company it is for in the "Company" box, the category it is for in the "Category" box, and the amount of the bill in the "Amount" box. You can also enter some notes into the "Notes" box if you wish. The bills entered will remain in this screen until they are posted to the Cashbook, discussed next.

Posting Bills to Pay to the Cashbook

Once you have paid one or more of your bills, you are ready to process the bills to pay. To do this, you simply click on the "Pay" tick box for the bills that you want to process. You must only tick one bill to pay at a time. If you would like to print envelopes for the bills you have selected, then click on the "Env" tick box also. Once you have selected a bill to pay, click on the "Post" button on the toolbar. At this point, the bill will get posted to the Cashbook.

Printing

Clicking on "Print" or "Preview" (print preview) will display bills due for the account selected. Clicking on the "Envelope" button on the toolbar will print envelopes for all bills with the "Env" box ticked.

2.12 Budgets

You can set up budgets for each month for both your income and your expenses, to track your progress throughout the year. For your convenience, the actuals are shown in yellow below the budgets.

The easiest way to set up your budgets is to start off by printing out last years actuals (click on the "Prev" arrow button to go to previous year) and then decide what you want to aim for. You can either enter each monthly budget, or if it is the same for each month, you can enter the annual amount into the "Total" column.