Start with a daily cash close
For clients that handle cash, the daily cash count should connect to the underlying activity. Opening cash plus cash sales minus cash expenses and purchases should create an expected cash balance. The counted cash then confirms whether there is a variance.
Saving the daily close creates continuity. The closing cash from one day becomes the next day's opening cash, so the firm does not have to rebuild the cash trail from memory.
Handle bank deposits as cash reductions
When cash is deposited into the bank, cash on hand decreases but bank activity increases. A good reconciliation workflow should let users record the deposit date, amount, notes, and attachment so the cash count and bank reconciliation both make sense.
This is why bank deposits should be editable and deletable with an activity trail. Mistakes happen, but the workflow should make corrections clear rather than hidden.
Keep proof attached to the transaction
Deposit slips, receipts, bank screenshots, and supporting files should stay attached to the related record. This helps the CPA firm answer client questions and review month-end work without hunting through email.
- Record cash sales by payment method.
- Record cash expenses and cash purchases separately from bank payments.
- Track bank deposits as cash outflows from the cash drawer.
- Attach proof directly to the deposit or transaction.
- Save daily closes for history and review.
FAQ
Should bank deposits reduce cash count?
Yes. A bank deposit moves money out of cash on hand, so it should reduce expected cash while creating a deposit record for review.
Why track attachments?
Attachments give the firm evidence for deposits, receipts, and adjustments when reviewing reconciliation history.
Can reconciliation be optional per client?
Yes. Not every client needs daily cash reconciliation, so firms should enable it only where it fits the client's workflow.