Single Entry Expanded Cashbook Columns
A separate column is made for each sale item and each expense
item, and totaled. This is a great way of keeping closer tabs on how
much you are receiving or spending for each income or expense type.
These separate columns are what make up the ‘accounts’ of a
bookkeeping system i.e. bank account, stationery account, internet
account and so on.
With this extended sheet it is wise to double
check that the totals going across the sheet add up to the totals going
down the sheet and so maintaining the accuracy of your accounts.
The difference between the Income and Expenses is written just below the Income Bank column as the ‘c/f’ figure. Carry on with a bank reconciliation as per previous example.
Check-out all the other free, printable bookkeeping forms. Go there...
How to make a Profit and Loss Report from the single entry Cashbook
One of the most important things you can use this single entry bookkeeping spreadsheet for is to make a report - the Profit and Loss report (also known as an Income Statement).
This report is very simple - it is the total Income minus the total Expenses equals your Net Profit (or loss).
Why should you do this report? So you can see if your business is worth operating. If it makes a profit - great!
If it makes a loss (in other words, your income does not cover your expenses), not so great.
If it continues to make a loss, you need to decide what to do to turn things around and make a profit.
Go here to learn more about the profit and loss and get a template.
How to make a balance sheet report from the cashbook
If at some stage you require a balance sheet, you can pass on the single entry bookkeeping records to your accountant.
He/she will also need to know how much your customers owe you and how much you owe your creditors.
Then your accountant will enter your totals into a double entry bookkeeping system and produce a balance sheet.
If you want to make a balance sheet yourself read more about balance sheets here and keep in mind that it is more difficult to pull together than a profit and loss report.
Now, if you are wondering why you would need a balance sheet here are a few reasons:-
- Your bank may request one if you apply for a loan.
- If you decide to sell your business a prospective buyer will most likely want to look at it.
Why? Because a balance sheet shows the financial condition of your business and whether or not it is viable.
If you like using Microsoft Excel, check out our Excel Cashbook.
It is based on this single entry bookkeeping spreadsheet but it includes a profit and loss report and a balance sheet that update automatically as you enter the figures.
Once your business grows and you’re able to process a cashbook with confidence you can move on from single entry bookkeeping and learn how to do double entry bookkeeping.