A cash book is a financial record that tracks all cash receipts and payments in and out of a business. In modern bookkeeping, it is typically maintained through your accounting software's bank register.
The cash book has been a fundamental bookkeeping record for centuries. It records every cash transaction - money coming in (receipts) and money going out (payments). In traditional bookkeeping, the cash book was a physical ledger that served as both a journal and a ledger account. In modern cloud accounting with software like Xero, the cash book function is fulfilled by the bank register, which records all transactions flowing through your bank accounts. The cash book is distinct from the general ledger in that it focuses specifically on cash movements, while the general ledger records all transactions including non-cash items like depreciation and accruals. A well-maintained cash book provides immediate visibility into your cash position and is essential for cash flow management. SortBooks helps keep your digital cash book accurate by suggesting the right account for miscoded bank transactions, which you approve before anything is written to Xero.
SortBooks helps with the bookkeeping behind cash book by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing cash book by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
The general ledger is the master record of all financial transactions in a business, organised by account. It forms the basis for preparing financial statements.
Bank reconciliation is the process of matching your accounting records to your bank statement to ensure they agree. It identifies discrepancies, errors and missing transactions.
Cash flow is the movement of money in and out of your business. Positive cash flow means more money coming in than going out. It is often considered more important than profit for business survival.
A receipt is a document confirming that a payment has been made. Businesses need receipts to support expense claims, tax deductions and audit requirements.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.