A cash receipt log template is a log of written acknowledgement of a specified amount of money by a retailer or a company for goods or services. Generally, these receipt logs are prepared by the company when they are more concerned with cash transactions during a specific period. A cash receipt log is a collection of cash transactions where the cash balance of a company is increased or decreased. This will also impact on the closing balances of current assets or current liabilities on a balance sheet. Moreover, it provides a simple way of managing cash related activities, like a customer paying for credit purchases, an individual paying rent for using your property, interest received on the investment or any other additional funds.
Cash Receipt and Cash Receipt Log
A cash receipt basically serves as evidence whenever a cash transaction occurs. Whereas, a cash receipt log serves as a record of all cash receipts which are issued for business transactions. Moreover, a customer and the company both keep a copy of the cash receipt because it is a proof of business transaction and cash is paid by the buyer. As far as cash receipt log is concerned, it is a managerial tool which keeps a record of cash related business transactions. While closing the annual book of accounts, cash receipts play a very crucial role, but this log has no direct impact on the books of account. Despite the fact that a cash receipt is part of an accounting system and helps management in keeping proper track of all the sales of goods or services when cash is received. Still, the cash receipt log holds colossal significance.
Benefits of Cash Receipt Log
A cash receipt log comes with multiple benefits. However following are the most crucial, which are as follows;
1- It is prepared for keeping records of cash-related transactions.
2- This log defines the overall trend of cash flows and the management can decide about future strategies based on this trend.
3- It enables a manager to decide whether he/she should go for a credit transaction or not.
4- Quick and comprehensive techniques can be taken into action based on the data provided by this log.
5- A cash receipt log defines how much cash balance a company will need at the end of a specific period.