A cash report records the cash inflows and outflows from a cash register over the course of a day, and is required by Danish law when a trader receives a cash payment from a customer. It is important to note that a cash report is distinct from a printed cash register report. While accounting can be done without these reports, failing to complete daily cash register reports can result in serious legal consequences during a tax authority audit.
Cash report – step by step
- Collect all receipts related to cash payments from customers or cash payments to suppliers for the whole day.
- Choose a cash report template to accurately determine the amount of money at the beginning and end of the day.
- Record the sum of money at the beginning of the day in the "cash at the beginning of the day" column.
- Calculate the total cash sales for the day, including credit card sales, and record the value in the "revenue" column. Include other cash in the same column, such as private money credited to the cash register.
- Highlight sales made with credit cards. Adjust the balance of cash in the next line by adding the amount from card sales transferred to the bank in the "outgoing" column to balance the cash total. The cash report template should have separate columns for bank and cash.
- Write out all cash expenditures during the business day, including any cash purchases made throughout the day.
- Calculate the total amount of cash at the end of the day by opening the cash register and counting the money. Record the total on a spreadsheet or piece of paper, noting the number of bills and coins of each denomination.
- If there is a cash difference, note it in the cash count. In the first line of the next day's cash report, write "cash difference from yesterday," and in the incoming box of the cash register, write the value of the difference. Write the negative difference in the outgoing box. Add or subtract the difference from the cash register accordingly.
- The next day, the cash balance in the morning column will show the previous day's ending cash balance. The "cash differences from yesterday" column will show the difference from the previous day, and the beginning of the day cash register balance will be the ending balance from the previous day plus or minus the difference.
Danish law requires the preparation of cash reports, which most entrepreneurs do daily. However, depending on the legal form of the business, you may have the option to choose a different period for preparing the cash report.
