A cash report is required by Danish law to document the amount of money that has flowed in and out of the cash register throughout the day, especially when a trader receives cash payment from a customer. It is not the same as a printed cash register report, but it is necessary for proper accounting. While it is possible to manage accounting without these reports, not completing daily cash register reports can result in serious legal consequences during an audit by the tax authority.
Cash report – step by step
- Collect all the receipts from the day that correspond to cash payments from customers or cash payments to suppliers.
- Choose a cash report template to determine the amount of money at the beginning and end of the day accurately.
- In the "cash at the beginning of the day" column, enter the sum from the start of the day.
- At the end of the day, calculate the cash sales from the whole day and record the value in the "revenue" column, including both credit card and cash sales, even if they are a combination of the two. Highlight the credit card sales. Add other cash, such as personal money credited to the cash register, in the same column.
- Adjust the cash balance in the next line by adding the amount from the card sales transferred to the bank to the "outgoing" column to balance the total cash.
- Write down all cash expenses during the day in the "outgoing" column. If any purchases were made throughout the day, put the receipt in the cash report for purchases paid in cash.
- Calculate the cash amount at the end of the day by counting the money in the cash register, noting the number of bills and coins of a given denomination and recording the total on a spreadsheet or piece of paper.
- If there is a cash difference, record it in the next day's first line of the cash report. Add the negative difference to the outgoing box and positive difference to the incoming box of the cash register. Update the cash balance accordingly in the cash register.
According to Danish law, cash reports are required and most business owners prepare them on a daily basis. However, depending on the legal structure of the business, entrepreneurs can choose a different period for preparing the cash report.