2 min read
Definition
A cashbook is the accounting record of all money received and paid out through a business's bank and cash accounts. It is the primary record of actual cash movements, reconciled against the bank statement to keep the two in step.
In plain terms
Every receipt and payment is entered in the cashbook, which is why it is the natural starting point for a bank reconciliation and for building a cash flow picture grounded in real transactions.
Why it matters
An accurate cashbook is the bedrock of reliable cash management. See bank reconciliation and cash position.
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