Daily cash closing
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Written by Rocío
Updated over a week ago

Depending on your activity, you may need to perform a daily cash closing. The cash closing is similar to the cash count, when the cash is accounted for.

For example:

Let's suppose you work in a shop and you started your day with a cash balance of 100 euros. Throughout the day you have made a number of sales and generated several tickets.

At the end of the day, the amount invoiced and resulting from that set of tickets should equal the amount in the cash register minus the initial balance of 100 euros.

Therefore, if at the end of the day you have 600 euros in the cashbox and you subtract the initial balance of 100 euros, the remaining 500 euros would have to match everything you have generated in cash during the day. This operation is important and will help you to check if the cash balance is correct, if the changes have been made, etc.

After checking that everything checks out, the next step is to leave the cash box with the balance you want to start the next day's activity with. For this reason, you will have to make an entry to unload the cash in favour of a deposit in the bank. We explain how to carry out this operation below.

To close the cashbox, you have to:

  1. Click on New journal entry.

  2. Check that the type of entry is Closing Reg. Entry and Predefined Entry.

  3. Enter the Date.

  4. From the first row in the Account column, choose the account 57000000 Cash, Euros from the search box.

  5. Include a short Description, e.g. Income.

  6. In the Debit column, enter the amount to transfer to the bank.

  7. In the second row, choose account 57200000 Bank, Euro from the search box.

  8. Then, in the credit column, enter again the amount to be transferred to the bank. By doing this, you avoid the cashbox being unbalanced with the new entry.

  9. Click on Save.

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