Recording every penny: setting up a cash account

In the modern digital era, handling cash can seem uncommon.

However, occasions still arise when cash is necessary, such as for a taxi ride or a quick croissant before an important meeting.

As part of the broader challenge of conquering freelance complexity, it's essential to address every financial aspect.

Why you need a cash account

To streamline your accounting process, it's a wise move to set up a dedicated account specifically for cash transactions.

Simply label this account Cash, and be diligent about manually logging all cash-related incomes and expenses into it.

The non-negotiable: accuracy

If you want a crystal-clear picture of your financial standing, meticulous record-keeping is non-negotiable.

Accurate accounting isn't just a good practice; it's a necessity. As we've highlighted in would you notice a bank error?, small errors can have significant repercussions.

The re-invoicing advantage

This organizational method also has a practical side benefit: it simplifies the re-invoicing process for cash expenses.

Just like your digital transactions, cash expenses can be easily re-invoiced, ensuring consistency across your accounting records. For more on this, see our article on expense invoicing for freelancers

Ready to take your freelance administration to the next level? Start your 7-day free trial with momo.coach today.