Cash Management

Cash on hand (type: Asset) is petty cash that you hold on hand. It is a 'problematic' account as it is hard to trace all the transactions, for example:

• you spend RM 0.20 for restroom, or
• you lost RM 0.10, or
• you go out lunch with colleague, he ordered RM 2.20 fried mee, and he don't have enough syling to pay, and you help him to pay RM 0.20.
• etc

It is hard to track all these transactions, and you may need to create various type of accounts to handle.

One of a suggested way to handle is to create a "MISC EXPENSES" account(type: Expenses), and use 'Recon' transaction on "CASH ON HAND" account to debit these transactions into the "MISC EXPENSES". You can set a default Recon Account at the Preferences screen.

For example:

Date    TxnType Description  Amount  Balance (let said previous balance=RM 10)
10Jan08 Normal  ATM withdraw RM 150  RM 160
11Jan08 Normal  Lunch        RM  30  RM 130
15Jan08 Normal  Movie        RM  50  RM  80
10Feb08 Normal  ATM withdraw RM  80  RM 160
12Feb08 Normal  Dinner       RM  90  RM  70
15Feb08 Normal  Book         RM  30  RM  40

Let said, on 16 Feb 08, you have counted your cash on hand (all money in you wallet, pocket, etc), and found you have RM 35 cash.

So you added an 'R' record:

Date    TxnType Description  Amount  Balance (let said previous balance=RM 10)
10Jan08 Normal  ATM withdraw RM 150  RM 160
11Jan08 Normal  Lunch        RM  30  RM 130
15Jan08 Normal  Movie        RM  50  RM  80
10Feb08 Normal  ATM withdraw RM  80  RM 160
12Feb08 Normal  Dinner       RM  90  RM  70
15Feb08 Normal  Book         RM  30  RM  40
16Feb08 Recon   Weekly Recon RM  -5  RM  35 (User amt=RM 35, toAcc: MISC Expenses)

System will auto adjust the balance, so that it is same with the amount user entered (RM 35).

Now from the system, you know that there is an RM 5 transaction not tracked. This amount, may be those hard to track transaction.

By just keep using this method daily or weekly, you can keep track all your expenses well.