Final Review

If you don't take anything else away with you from this Tutorial, you should now at least be aware of the importance of managing and controlling the life blood of your business - Cash !

What Did We Cover ?

Lesson 1 Recording Cash Transactions discussed and reviewed the different journals, records, documents, and forms used to record and keep up with the cash coming in and going out of a business. Sample journals, records, and forms were illustrated and discussed to show you what journals, records, and forms to use and how to use them.

Journals, records, documents, and forms discussed include:

Check Book
Cash Disbursements Journal
Payroll Journal
Cash Receipts Journal
Daily Cash Form
Deposit Book and Slips
Credit Card Slips
Checks

Lesson 2 Petty Cash explained what Petty Cash is and how you set up, control, operate, and replenish the fund when it "runs out of cash". In addition, samples of the various forms and records used were illustrated and explained. A detailed example was also provided as an aid to understanding how to operate a Petty Cash Fund.

Lesson 3 Cash Controls attempted to take the mystery out of what accountants call Internal Controls - specifically the internal controls that involve Cash. The lesson also presented some good ole common sense procedures to help monitor and control your cash.

Lesson 4 Bank Reconciliation defined, explained, and illustrated common banking terms that you need to understand in order to accurately prepare a bank reconciliation. The lesson also discussed and explained what's involved, what records are used, and the detailed steps taken to properly prepare a bank reconciliation. In addition, the lesson had you, with a little help from me, actually prepare a bank reconciliation for a fictitious business.

Lesson 5 Cash Forecasts / Projections / Budgets discussed and explained what a Cash Forecast is, what's involved in preparing one, why you need one, how it benefits you, and what information and tools you need in order to prepare one.

The lesson also provided you with my free Simple Cash Forecasting Template (Excel or free Open Office Spreadsheet needed to use). The Cash Forecasting Template was explained and used when you prepared an actual Cash Forecast for a fictitious business.

What should we now know or at least be familiar with ?

How not only profits but also cash flow are critical elements to the success of a business.
Some ways to consider and implement to improve your cash flow.
The importance of maintaining good cash records and what the records are.
What a petty cash fund is and how to use one.
How by establishing some common sense rules and procedures you can help safeguard your business's Cash.
The importance of preparing a monthly bank reconciliation and how to prepare one.
Why a Cash Forecast is an excellent tool for a business to use and how to prepare one.

Congratulations

Yes, you can teach an "ole" and young dog new tricks. Just take a look at what You, Ma, and Pa accomplished. Hopefully, if I did my job, when it comes to Cash Management, you can now claim to be smarter than the average bear.

Lastly, I don't want to burst any bubbles, but if you don't know already, there is no Santa Claus ! So, you can't depend on him to bail your business out when you have cash flow problems (besides he only comes around once a year anyways); but, if I did my job you should now have the knowledge and tools to manage your cash, foresee problems ahead of time, and take actions to head them off.

What's next ?

Cash Videos