Cash report document – what should you know about it?

The cash report document helps cash handling companies control the flow of finances. It allows them to keep track of expenses as well as receipts. The cash report also helps avoid accounting problems. What should it contain and how to keep it correctly? We explain it in the article below.

What Is a Cash Report Document?

A cash report is an accounting document. It contains a detailed record of cash operations in a company. It is essential for proper bookkeeping. Moreover, it allows you to control your cash flow. Every company that handles cash transactions should keep such records. This provides full control over the company’s finances.

A cash report provides clear documentation of cash inflows and withdrawals. This is vital during tax audits. It also simplifies the management of financial liquidity. Moreover, such records help to monitor businesses’ income and expenses in real time.

Elements of a Cash Report Document

A proper cash report document should include:

• Company details – usually on the company stamp.
• Document identification – report title and number.
• Reporting period – timeframe covered by the report.
• Name of register
• List of all cash transactions. Chronological record with details like e.g. transaction number, date, document description, and details of a person that makes payment or withdraws money.
• Counter account number – account numbers assigned under the double-entry accounting system.
• Calculation of cash turnover – including initial and closing cash balances.
• Attachments list – source documents and alternative accounting evidence.
• Report preparation and approval date.
• Signatures – of the person preparing and approving the report.

A cash report should be kept continuously. Thanks to this you can track the history of cash operations. In this way, irregularities and possible financial inconsistencies can be avoided. Each operation should be properly documented to ensure its credibility.

How to Prepare a Cash Report Document?

A cash report is prepared based on documents that illustrate the cash flow of the company. In particular:

• basic proof of purchase, including VAT invoices and receipts,
• accounting evidence including cash register receipt documents and cash register payment documents,
• payment orders for employees’ travel expense settlements,
• payroll envelopes,
• applications for the payment of advances for business travel from employees,
• withdrawal orders accepted by authorized persons,
• proofs of payments to bank accounts,
• payment instructions.

Cash Receipt Evidence and Cash Payment Evidence – Key Documents

Cash Receipt Evidence and Cash Payment Evidence are documents confirming cash inflows and withdrawals. They are of key importance for the correct recording of financial operations in cash reports.

Thanks to these documents, it is possible to properly monitor the cash balance in the cash register. It also ensures compliance with accounting data. Every deposit and withdrawal should be documented. This helps to avoid mistakes and fraud.

Is a Cash Report Mandatory?

A cash report is required for businesses managing cash transactions independently.

The cash report covers periods defined in the cash handling instructions as settlement periods. The minimum period for preparing a cash report is at least once a month, at the end of each month. It is usually prepared by a cashier. The document must be then forwarded to the person responsible for accounting. A copy remains in the company’s records.

A cash report helps manage financial records and protects businesses from accounting errors. Regular cash flow control minimizes risks related to financial mismanagement.

What is important, cash reports must be archived for five years. This period is counted from the end of the calendar year in which the tax payment deadline expires.

How to Settle a Cash Report?

If discrepancies occur and the actual cash balance is higher or lower than reported, it leads to a cash surplus or cash shortage.

Cash surplus occurs when actual cash exceeds the recorded amount, indicating undocumented income. Surpluses should be deposited into the company’s revenue account.

Cash Report Document – Summary

A cash report is a crucial document for businesses handling cash. Proper maintenance simplifies financial management and prevents accounting issues. A structured cash documentation system ensures full financial control. Moreover, it protects businesses against unexpected financial challenges.

For professional assistance, consider hiring an accounting office in Warsaw. Our experts ensure full compliance with legal standards. Contact us today!

FAQ – Cash Report Document