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
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