We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Cash Journal?

Malcolm Tatum
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A cash journal is a simple hard copy or electronic document that is used to make immediate accounting entries of both receipts and expenditures. Transactions that are entered into this journal are usually recorded daily, or at least in chronological order. Part of the document's charm is that financial transactions entered as line items can be reviewed quickly when necessary, and it provides a quick reference when entering the transactions into other sections of the accounting books.

Businesses can use a cash journal for keeping up with a broad range of receipts and payments, or it may be used to track one area of activity. Many businesses choose to maintain a simple journal as a means of keeping a record of income and disbursements associated with a petty cash fund. This can allow authorized employees to handle a transaction out of petty cash and make a quick entry with the basic information. At a later time, the transaction can be fully documented in the balance sheet ledger or other appropriate record.

The key to an effective cash journal is entering enough information about each financial transaction to properly account for the income or expense. Generally, the document will include columns to record such basic detail as the originator of the transaction, cash in or out, the amount of the cash associated with the line item, the date of the transaction, and a brief description of the action. This is usually enough information to allow a more comprehensive recording at a later date.

Even a home budget can benefit from using this principle. Using a simple columnar book or an electronic spreadsheet, it is possible to set up a simple journal that everyone can use. This will make it possible to track all the expenses associated with running the household, along with funds that are set aside for that purpose.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
By anon213103 — On Sep 09, 2011

yeah, there should be examples shown.

it's difficult to imagine how expenses should be recorded when there are no examples given by accounting sites.

By anon58751 — On Jan 04, 2010

I do think it is important that a sample is shown, especially for those who are not accounting oriented.

By anon42471 — On Aug 21, 2009

show cash journal sample.

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.