Cash may not leave a bank statement, but it still counts as part of your business records. If a customer pays you in cash, you should record the income just as you would a bank transfer \u2014 including the date, amount and what the payment was for. The same applies to cash expenses: a receipt is useful evidence, but if you cannot obtain one, you should still keep a clear record of what you bought, when, how much it cost and why it was a business expense.<\/p>\n\n\n\n
The biggest problem with cash is often not the payment itself, but the missing paper trail. If you regularly take cash out of the business, mix business and personal money or rely on memory to record transactions later, it becomes much harder to prove that your figures are accurate. Keeping a simple cashbook or digital record and storing receipts and invoices as you go can make a significant difference.<\/p>\n\n\n\n
Cash is not invisible to HMRC \u2014 it is simply recorded differently. Good records should allow you to explain where your business income came from and how your expenses were calculated, whether the money moved through your bank account or changed hands in cash.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Cash may not leave a bank statement, but it still counts as part of your business records. If a customer pays you in cash, you should record the income just as you would a bank transfer \u2014 including the date, amount and what the payment was for. The same applies to cash expenses: a receipt…
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