Small Business Accounting and Cash Management in Ten Days

Author: Chen Qihua
Publisher:
Publish Date: 2003-09-04
Features: With the development of the socialist market economy, the accounting profession has become increasingly popular. Let alone its stable job prospects and bright future, just the high income it offers is highly attractive in today's society. No wonder so many people aspire to pursue a career in accounting. While this book cannot make you an accounting supervisor in a large enterprise in just ten days, it can certainly equip you to handle accounting and cashiering tasks in small businesses. Friends who are eager to enter the accounting field should take action quickly! This book is an introductory guide to the practical operations of accounting and cashiering in small businesses. It introduces the basic processes and key points of accounting and cashiering work in simple and easy-to-understand language, making it clear at a glance and comprehensive after reading. The key to learning this book is to combine thinking with hands-on practice. We do not advocate rote memorization but emphasize memorization based on understanding. When encountering numerical calculations in the book, it is best to work them out yourself and then compare with the book to see if there are any discrepancies. If there are, identify the reasons promptly. By persisting in this way, you can master the key points of accounting practice.
Excerpt: Cash Withdrawal and Deposit
1. Cash Withdrawal
All units must handle cash withdrawal within the cash usage limits specified by the bank. Generally, the cashier fills out a cash check to withdraw cash from the bank. The requirements for filling out a cash check are as follows:
- It must be filled out in a steel pen using carbon ink or blue-black ink in the order of the check numbers. The handwriting must be neat and legible, without any scribbles. Blue ink or red ink cannot be used.
- The date of issuance should be the actual date of issuance and cannot be back-dated or pre-dated.
- The payee's name must be consistent with the name reserved for the bank's seal.
- The numerals and words for the amount must be written according to regulations. If there is an error, it cannot be corrected and must be voided and rewritten.
- The purpose column must clearly state the actual purpose.
- The signature must be complete and must match the bank's reserved seal.
- The back of the check must be endorsed (signed) by the withdrawing unit or the withdrawer, and it must be verified before being submitted to the bank's settlement counter. The bank will issue a token as proof of withdrawal, which is then used to collect the cash at the cashier's counter. When collecting the cash, the amount on the check must be counted on the spot.
2. Cash Deposit
All units must keep and use cash within the stock limit approved by the opening bank. Cash received and cash exceeding the stock limit must be deposited in the bank promptly. The general procedure for depositing cash is as follows:
- First, the cashier counts the banknotes and coins, arranging notes of the same denomination together and bundling them in bundles of 100. If there are not enough for a bundle, they are arranged from high to low denomination. Coins of the same denomination are grouped together. One-yuan, five-jiao, and one-jiao coins are bundled in paper rolls of 50 each, while smaller coins are bundled in paper rolls of 100 each. Coins that do not fill a roll are generally not deposited in the bank but kept for making change.
- After the cash is neatly counted and verified, the cashier fills out a cash deposit slip and deposits it in the bank. The cash deposit slip is either in triplicate or duplicate. Taking the Cash Deposit Slip (Triplicate) of Industrial and Commercial Bank of China, Shanghai (Branch) as an example, the first copy is the receipt, which is stamped by the bank and returned to the depositing unit; the second copy is the income voucher, which is kept by the receiving bank; and the third copy is the attachment, which is kept by the bank's cashier as a record.
- When filling out the cash deposit slip, double-sided carbon paper should be used. The date of deposit must be the date of deposit, and the payee's name must be written in full. The source of funds must be filled out, and the numerals and words for the amount must be written correctly. The denomination and amount columns should be filled out according to the actual cash deposited. The cash and the deposit slip are then submitted to the bank's receiving counter for deposit.
- After verification, the bank stamps it and returns the first copy (receipt) to the depositing unit as a record for bookkeeping.
3. Strictly Implement Cash Receipt and Payment Procedures
To strengthen cash receipt and payment procedures, cashiers and accounting personnel must clearly define their responsibilities and strictly adhere to the principle of separating accounts, money, and materials to implement mutual restraint.
(1) Enterprises should prepare cash receipts and payments plans according to regulations and organize cash receipts and payments activities according to the plan. Cash received should be checked for authenticity, and cash paid should be counted on the spot.
(2) The accounting department of enterprises must reasonably divide the work between cashiers and accountants. The custody and handling of cash receipts and payments must be the responsibility of the cashier and should not be handled by non-cashier personnel.
(3) Strictly implement the cash inventory and verification system to ensure the safety and integrity of cash. Cashiers must count the actual amount of cash daily and reconcile it with the balance in the cash journal to ensure that the accounts and actual amounts match. The accounting department must conduct regular or irregular inventory and verification to promptly identify or prevent errors, misappropriation, embezzlement, and other illegal acts. If there are discrepancies in the cash balance, the reasons must be found promptly.
(4) All cash receipts must be accompanied by receipts. Even if some cash receipts already have payment vouchers from the payee, receipts should still be issued to the payee to clarify economic responsibilities. The issuance of receipts for cash receipts and the handling of receipts must be separated and handled by two different personnel, such as sales personnel responsible for filling out invoices and receipts, and cashiers handling the receipts, to prevent errors and fraud.
(5) All cash receipts must be recorded in the books and deposited in the bank on the same day. If cash received occurs after the bank stops receiving cash on the same day, it should be deposited the next day. If it is difficult to deposit on the same day, the bank must be notified and a mutually agreed deposit time should be set.
(6) It is not allowed to use bank deposit accounts to deposit, withdraw, or transfer cash for other units or individuals.
(7) All cash payments must have supporting documents, signed by the person in charge, and reviewed by superiors and relevant personnel before the cashier makes the payment. After payment, the cashier must stamp "Cash Paid" and keep the documents properly.