A cash memo is a formally used document by sellers because they want to keep track of all the sales they have made through cash. There are different ways to pay the bill the customer receives as a result of his purchase. Some customers choose to pay via card either debit or credit and others choose to pay in the form of cash. The transaction through the card is automatically documented. However, keeping a record of the cash is a challenge. A cash memo is used to hold the record of all the money that a seller receives in the form of cash.
How important is it to use a cash memo worksheet?
These days, a simple worksheet is used to keep track of different types of information. Using a worksheet for creating a cash memo is also very common and useful. It is something a seller is required to keep at hand always so that he doesn’t forget to document any cash transaction.
A cash memo confirms that the money transaction has been carried out and now it is ready to be used as legal proof also. Since the cash memo keeps a record of all the cash received by a business, people who want to check the progress of their business can also look through the cash memo document to see different stats that can be used as performance measures.
What are some best practices to create a cash memorandum using a worksheet?
Here are a few useful tips for all those people who want to have this document that looks professional.
Use the appropriate software for this purpose:
There is much software that allows people to create worksheets and memorandum for business purposes. However, the usability and ease of use of every software vary. Therefore, you need to be careful as to which software you choose for designing your cash memorandum. One of the easiest and most commonly used software is Microsoft Excel. It has plenty of useful features.
Mention the details of the seller and buyer:
Whenever a money transaction is carried out in the form of cash, there are always two parties involved in it: the seller and the buyer. The name and contact details are mentioned in the cash memo as it is the most important information.
Details of the cash:
This part of the cash memo includes the details of the cash and the transaction which has been carried out. It should mention the total amount that a business has received from the customer. To make a comprehensive memo, you can add the complete breakdown of the total amount and a description of the tax imposed on the total amount.
Terms and conditions of the business:
For a business, it is very important to mention the terms and conditions of making the payment. For example, if the money is not returned without showing the cash memo, it should be mentioned in this section. Some businesses also choose to include this section at the back of the document while some skip this part.
What is the best use of the cash receipt?
The best use of the cash receipt is:
To keep a record of the cash received:
If a business wants to know how much it earns in a single day, it can have a look at the details of the cash memo worksheet. It gives a clear picture of the earnings of the business.
It is proof of the payment:
The cash memo keeps the record of the dates on which the cash was received. This way, it becomes a proven fact that the cash has been received after the successful completion of the purchase. Now, if anything a customer wants to do such as returning or exchanging the product, the cash memo will be consulted first.
Using the template:
It is a basic need of every business to use a cash memorandum because money is not always paid through a card. Using a template is a great tool that makes it very easy for a business to document everything regarding the money received from the buyer in the form of cash.
Worksheet File: 21 KB
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