How to keep a cash book: cash in, cash out, running balance
A cash book is a simple record where you write one line each time cash comes in or goes out, along with the balance after that line. Each balance is the previous balance plus cash in minus cash out, so the last line always tells you how much cash you should have on hand. It works just like a bank passbook.
Cash book vs budget app
A budget app is mainly about where your money went. A cash book is about how much should be left right now. That's why every line carries a running balance you can check against the actual cash in your wallet, till or cash box.
It works for anything paid in cash: a shop till, office petty cash, club or team dues, a household cash envelope or a child's pocket money.
The five columns you need
Date, details, cash in, cash out and balance. That's all. Each line has an amount in either cash in or cash out, never both.
Worked example: one week in October
Starting with $50.00 on hand, the book looks like this. Each balance is worked out from the line above it.
| Date | Details | Cash in | Cash out | Balance |
|---|---|---|---|---|
| Oct 1 | Carried over from September | 50.00 | ||
| Oct 2 | Pocket money | 30.00 | 80.00 | |
| Oct 3 | Lunch | 9.00 | 71.00 | |
| Oct 5 | Bus pass top-up | 20.00 | 51.00 | |
| Oct 7 | Sold old books | 15.00 | 66.00 |
How to keep it day to day
- Count the cash you have now and write it as the first line (opening balance).
- Every time cash moves, write the date and a short note, and put the amount in cash in or cash out.
- Work out the new balance: previous balance + cash in − cash out.
- Once a day or once a week, count the actual cash and compare it with the last balance.
- If they differ, look for a missing receipt or an expense you forgot, and add it as a line.
When the balance doesn't match
The usual causes are small expenses that never got written down, an entry recorded twice, or an arithmetic slip. On paper, fixing one line in the middle means recalculating every balance below it, which is where mistakes pile up.
Keeping it in Cashrow
In Cashrow you only enter cash in or cash out; the running balance is calculated on every line, and the current balance sits at the top of the screen. Edit or delete an old entry and every balance below it updates instantly. Long-press to duplicate, move or delete with undo, use the built-in number pad and recent-note chips, or log cash in / cash out straight from the home-screen widget.
Not accounting or tax advice
This guide is general information about keeping a record of cash. It is not accounting or tax advice. Bookkeeping and record-retention rules for businesses vary by country and business type; if you need to meet them, check with an accountant or your local tax authority.
Let Cashrow keep the running balance
Get Cashrow on Google Play