My company runs private nurseries. The two most common ways of payments we receive from parents are credit/debit cards and cash. As there are always some on-going expenses that are paid in cash, some of the fees received are invested back into business, i.e not banked. My question is- what account do I assign to fees paid in cash but not banked (paid into business account)?
I am doing work for a nursery right now who does the same thing. Its really quite simple but easy to overcomplicate in your head. When you recieve the cash assign it to a cash account (a type of bank account) show your cash expenses coming from here and when you bank the remainder just do a transfer between cash and current account.
One of the things I am trying to get my client to buy into is setting up a seperate petty cash system as the way you (and they) do things can easily become very confusing and lead to cash being lost unless you are very careful.
