Making out the analysis book


R

Richard

We are a new small association, and we have bought an analysis book to
record the financial transactions. I am trying to figure out how best to use
the analysis book.

On the left hand side, the book has 3 cash columns, on the right 8 cash
columns.

Each cash colum on the right side will be an expense column, things bought
with a cheque. Now every month I will add each column up to get a monthly
total expenditure for every type of expense. Then, by adding up each
column total, going from left to right, I will end up with a total monthly
expenditure figure, which I will record in the last column. Okay, that's
fine, I'm happy with that. What is so easy is that each entry is going the
same way, ie, they are all "out".

Now concering the 3 cash columns on the left. I'm not so certain what the
colums should be recording. But surely there has to be transactions "in"
and transactions "out". My best attempt is as follows:

In Out Total

1st Grant Chk 1000

7th Donation 50

16th Petty Cash 100

31st 1050 100 950

So, on the 31st, I make calculations which tells me what money came into
the bank account that month, what went out, and a total figure that comes
to 950. Now of course, that 950 is not telling me the bank balance is on
the 31st, it's just telling me what came into the bank account, what petty
cash went out, but does not record expenses paid by cheque, they are
recorded in the 9 cash columns on the right hand side of the analysis book.
(BTW I have a petty cash book, which will record the incoming and outgoing
cash, which would have a monthly balance).

Okay, so the question is, should the analysis book that I am using for the
main accounting book of the association record, contain the
bank balance at the end of the month, and the total amount of monetary
assets? I'm not sure, but I think it should. (The alternative is to draw up
some kind of seperate balance statement every month). So, this is how I've
figured out to use the analysis book so I can see the bank balance, and
total monetary assets at monthly intervals:


Total | Total
| M.Exp.
|
950 | 400
Funds in bank 550
Petty cash +100
Total money funds 650

It obviously works, but again, should I be recording the funds in the bank,
and total money funds in the analysis book? Or in a separate book or sheet?

Let's say that I should record these values in the analysis book, it all
looks a bits scrappy on the expenses side of the book. I'm using 3
lines to put my totals in. But that's the only way I can figure how
to record funds in bank, and total money funds.

If there is a neater way to record the transactions, would you please
let me know. Thanks. Rich.
 
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T

Troy Steadman

Richard said:
If there is a neater way to record the transactions, would you please
let me know. Thanks. Rich.
Does your analysis book have the word "Evrite" or "Simplex" on it (in
which case you should throw it away because it won't give you any
information at the year end) or is it a blank ruled ledger (in which
case it is very useful but not as useful as the spreadsheet you should
have bought instead)?




--
 
T

Troy Steadman

We are a new small association, and we have bought an analysis book to
record the financial transactions. I am trying to figure out how best to use
the analysis book.

On the left hand side, the book has 3 cash columns, on the right 8 cash
columns.

Each cash colum on the right side will be an expense column, things bought
with a cheque.
Already the terminology is getting a bit un-accountant-like. "Cash"
column here sounds like you are talking about "Cash", not "Cheques"
which you would nomrally find in an...ermm..."Cash Book".
Now every month I will add each column up to get a monthly
total expenditure for every type of expense.
So this *isn't* Simplex or Evrite, they are 52 separate weeks, phew!
Then, by adding up each
column total, going from left to right, I will end up with a total monthly
expenditure figure, which I will record in the last column. Okay, that's
fine, I'm happy with that. What is so easy is that each entry is going the
same way, ie, they are all "out".
Normally (if there's a choice) the total goes in the left-most column.
What is so easy is that each entry is going the
same way, ie, they are all "out".
[puts on thinking cap]
Now concerning the 3 cash columns on the left. I'm not so certain what the
colums should be recording. But surely there has to be transactions "in"
and transactions "out".
Nothing is more certain.
My best attempt is as follows:
<snipped>

1) Take each Bank Account or Petty Cash tin and have a separate book (or
even piece of paper) for each.

2) Record *every* transaction in *every* account.

3) Every month check that what you have recorded in your book, and the
balance it shows:

OPENING BALANCE + RECEIPTS - PAYMENTS = CLOSING BALANCE

....bears some resemblance to the balance on the bank statements/what is
*in* each petty cash tine.

NB: You should *not* expect your Bank total to *exactly* match the
Bank's total because there will be unpresented cheques (etc etc) which
are correctly *in* your book and equally correctly *not* on the bank
statement.

If you want to be really professional you can do a formal Bank
Reconciliation, there's probably a demo here:

http://www.nrbarton.co.uk/Bookkeeping/index.html

A quick check reveals there isn't, I'll post the "standard layout"
tomorrow.

Good luck!


--
 
P

Peter Saxton

Please listen to Troy and use a spreadsheet such as Excel.
 
R

Richard

Troy said:
Already the terminology is getting a bit un-accountant-like. "Cash"
column here sounds like you are talking about "Cash", not "Cheques"
which you would nomrally find in an...ermm..."Cash Book".


So this *isn't* Simplex or Evrite, they are 52 separate weeks, phew!
It's Collins Cathedral Analysis Book 69 3/9 .1

It's actually described as a petty cash book with 3 debits, and 9 credits.

http://www.1north.co.uk/Merchant2/merchant.mvc?store_code=1&screen=PROD&product_code=060777

Most of the products "At Staples" were these analysis books, with various
combinations of debit/cedit cash columns. There were a very few offerings
that were obviously accounting books for small/medium traders. I had
analysis book in hand, and a person I talked to who did accounts says it's
fine to use an analysis book for our small association. So, I got the
analysis book.
Then, by adding up each
column total, going from left to right, I will end up with a total
monthly expenditure figure, which I will record in the last column.
Okay, that's fine, I'm happy with that. What is so easy is that each
entry is going the same way, ie, they are all "out".
Normally (if there's a choice) the total goes in the left-most column.
What is so easy is that each entry is going the
same way, ie, they are all "out".
[puts on thinking cap]
Now concerning the 3 cash columns on the left. I'm not so certain
what the colums should be recording. But surely there has to be
transactions "in" and transactions "out".
Nothing is more certain.
My best attempt is as follows:
<snipped>

1) Take each Bank Account or Petty Cash tin and have a separate book
(or even piece of paper) for each.
2) Record *every* transaction in *every* account.

3) Every month check that what you have recorded in your book, and the
balance it shows:

OPENING BALANCE + RECEIPTS - PAYMENTS = CLOSING BALANCE

...bears some resemblance to the balance on the bank statements/what
is *in* each petty cash tine.

NB: You should *not* expect your Bank total to *exactly* match the
Bank's total because there will be unpresented cheques (etc etc) which
are correctly *in* your book and equally correctly *not* on the bank
statement.

If you want to be really professional you can do a formal Bank
Reconciliation, there's probably a demo here:

http://www.nrbarton.co.uk/Bookkeeping/index.html

A quick check reveals there isn't, I'll post the "standard layout"
tomorrow.

Good luck!
Clearly, the analysis book is primarily sold as a petty cash book to record
cash transactions. But, if I were to use this book, I'd be cutomising it to
record in the cash colums what I want it to record. Each column is *not*
labeled cash column, so you can put what you want at the top of each column.

In my initial post, you see that the 9 columns on the right hand side record
expenses, I can entitle the columns such as stationary, office eqiupment,
internet, salary, etc. At the end of the month that gives me total
expenditure for things I used a cheque for.

On the 3 columns on the left, they are essentially used to record income
into the bank, but also one special kind of transaction, cash out to the
petty cash book.

What I've just got to know in my own mind is what calculated totals
represent.

Totals for exepenses are easy, the final monthly total just tells me money
that has been spent via cheques. I've got to use this figure to get to the
bank balance and total funds.

Left 3 columns are useful to tell me how much money came in, and what went
out to petty cash. But unless I modify things as I have them, (or getting
an analysis book with 4 or 5 debit columns) by including the expenses
figure, the left hand page never actually tells me the bank balance, just a
figure to use to work that out. I could modify how I use the left hand
colums by including expenses and petty cash: Expenses figure obviously
comes from monthly totals recorded on right hand columns, and petty cash
from balance on petty cash book.

Modified debit side of analysis book

In Out Total

1st Grant Chk 1000

7th Donation 50

16th Petty Cash (100)

31st Totals 1050 (100) 950

31st M.Expenses (400)

31st Bank balance 550

31st Petty cash 100

31st Total funds 650

Of course, there might be some reconciliation figures to put in as well, so
the monthly bank figure matched the bank statement.

Using the columns in this analysis book inthe wayI've indicated would
work, I show in it the pertinent figures, but would it be considered
adequate/ kosher? If an accountant came and looked at the
analysis book, would he think it was showing the right figures,
in a perfectly acceptible way?

Perhaps I can use it, in the way I've customised it, if and until it becomes
obvious the analysis book is not sophisticated enough.
 
T

Troy Steadman

Perhaps I can use it, in the way I've customised it, if and until it becomes
obvious the analysis book is not sophisticated enough.
Richard, all you need to do is list out what you are doing. One superb
way of keeping bank records (in a simple system such as yours ought to
be) is to annotate the bank statements to what each amount is.

As things get more complicated the notes on the bank statements get a
bit hard to follow, so many people will keep a separate list - *their*
version of the bank statements if you like.

Either way it is just a list.

You can hand-write your list in a way that for 30 years has been the
best
and most reliable method of producing accounts for small comapanies, but
it is arguably better to spend a bit of time learning Excel (or Lotus or
whatever spreadsheet you can lay your hands on), because it will save
you so much time in the future with the adding up.

More tomorrow.


--
 
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R

Ralph Corderoy

Hi Richard,
Now concering the 3 cash columns on the left. I'm not so certain what
the colums should be recording. But surely there has to be
transactions "in" and transactions "out".
Why not use one page to record all receipts, and another to record all
payments. That way you can have different sources of receipts and
different sinks of payments using all the columns across the page.

At month end, when the bank statement arrives, rule off on both pages,
total them up for the month, mark up your entries that have appeared on
the bank statement, etc. If this sounds attractive I could explain a
little more what I've done but IANA accountant.

Cheers,


Ralph.
 
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R

Richard

Edward said:
I have a self reconciling Excel cash book model that I've used since
1995 and refined until it's near perfect. Get a PC, get Excel on it
and I'll gladly send you a copy.... free.
I have a PC, and have Excel 97.

As you see in the thread "Excel bookkeeping template" I'm looking for an
already made template. At the moment at least all the template has to do, is
to cope with monies coming into the bank, which is infrequent, cash going
out of bank to petty cash tin, so, that's one little "accounting section"
for excel to cope with, cash going out of petty cash tin, another
"accounting section", monies going out from bank by way of cheque to pay
most of the expenses, like stationary whatever, another "accounting
section". Of course, the main monthly totals tou are seeking to compute are
what's in the bank, what's in petty cash, what's the total funds, and what
are the expense totals. Hopefully excell can automatically calculate all
these when at the months end all the relevant data is inputted.

If you want to send me the excel template please send to:

(e-mail address removed)

There is underscore after "work", and please romove DIRT.

Thanks.

Rich.
 

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