A simple small-business cashbook: how to keep one in 10 minutes a day

Last updated 11 Oct 2026 · Worldwide

Short answer. A cashbook is a dated list of every amount that comes in or goes out, with a running balance. Five columns are enough: date, description, category, money in, money out (plus a balance column that adds up by itself). Write it every day, count your cash once a week against the balance, and keep personal spending out of it.

Why keep one

Most small businesses that run out of cash were profitable on paper. A cashbook shows what you actually have today, which customers pay late and where the money goes. It is also the first thing your accountant will ask for.

The columns

Date	Description	Category	Mode	In	Out	Balance
(date)	Sale to (customer)	Sales	UPI	(amount)		(previous + in − out)
(date)	Shop rent	Rent	Bank		(amount)	(previous + in − out)

Keep the "Mode" column (cash, UPI/card, bank) so you can check each against its own balance.

A 10-minute daily routine

Enter every sale and expense from today (bills, receipts, payment app history).
Check today's closing cash in hand against the cash balance.
Note anything unpaid in a separate follow-up list.

Once a week, match the bank and payment-app entries with your statement. Once a month, total each category.

Common mistakes

Mixing personal and business money. Record what you take for yourself as "Owner's drawings".
Recording only cash. Digital payments are most of the money for many shops now; include them.
Batching a month at once. Small items get forgotten. Daily is easier than monthly.
No receipts. Keep a photo of every bill in one folder named by month.
Too many categories. Start with 6 to 8 and add only when you need to.

Starter checklist

Opening balances for cash, bank and payment app
Category list (sales, purchases, rent, wages, utilities, transport, drawings, other)
A daily time slot
A receipts folder
A weekly count

Frequently asked questions

What is a cashbook?

A dated record of all money received and paid, with a running balance, used to know how much cash a business has at any time.

Do I need accounting software for a cashbook?

No. A notebook or a spreadsheet works. Software helps when you need invoices, tax returns or several users.

How often should I update my cashbook?

Daily, with a weekly check against cash in hand and bank statements.

Official sources

Not accounting or tax advice. Record-keeping rules differ by country; ask a local accountant what you must keep and for how long. Last checked 11 Oct 2026.

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