Obligatory business books for non-profitable organizations

A cash report for paying in cash 

What is a cash book, what should it contain, what is a cash maximum, are questions that Emina Nuredinoska and Milka Bozinovska – Miova are going to answer in this issue of the Civic World.


Cash diary (report)

The cashbook is run to precisely follow the flow of cash. It means that for each payment from the cash desk (cash desk payment), there is a cash receipt, and for each pay-out  there is a pay-out receipt, and the stated items are reported in the cash report. The cash receipt and the pay-out receipt have to contain all the elements of the accounting items. The cash diary (report) is run chronologically, that is, according to the events of happening (payment and pay-out). It is concluded according to the organization’s need, most often monthly, and if necessary more often (weekly or daily). The condition, that is the cash balance has to be equal to the real amount of money in cash that can be found in the cash desk.

The non-profitable organizations are obliged to run all their incomes through an account opened in a bank, which means that all the incomes that are paid in cash, it is necessary to be paid on a bank account in the bank depositor the same or the next working day the latest.

It is important to mention that the public incomes (taxes, contributions) cannot be paid in cash regardless of the amount paid, i.e. they are obligatorily paid not in cash on a bank account.


What should the cash report contain?

The cash report can be run on a computer or manually, on a special form.

The cash diary or report should minimally contain the following columns:
1. Date – the date of the starting balance is written;
2. Document title – the number of the deposit form or the number of the pay-out form is written;
3. Description – the description of the event is written;
4. Input – the starting balance and the amount of the income from the cash receipts;
5. Output – the amount of the expense from the pay-out receipts.

At the end of the cash report there is a conclusion of the cash diary which contains the following items:
1. Cash desk turnover – the sum of all incomes from the column input but without the starting balance and the sum of all payments from the column output;
2. Balance from _____ – the date of concluding the previous diary, and in the column for amount the concluding balance is written from the previous period, that is, the starting balance of the current period;
3. Total incomes – the total sum of the column input with the starting balance, which means the amounts “cash desk turnover” and “balance from ____” are summed up;
4. Payments – the total sum of the column output;
5. Balance on ____ – the date of concluding the diary, and in the column output the difference “total incomes” and “payments”, and the received amount has to be equal to the amount of money in the cash desk.


For which payments there has to be a cash receipt and what should they contain?

Cash receipt is necessary to be made for all cash incomes, i.e., for each input of cash in the cash desk. It means that there should be a cash receipt for each cash income by other physical or legal entities, but also for the cash withdrawn from the bank account.


For which payments there has to be a pay-out receipt and what should they contain?

Pay-out receipt should be made for all cash expenses, that is, for each cash output from the cash desk, including the advance payments, too. It means that there should be a pay-out receipt for each payment in cash, but also when the cash is paid on a bank account.


What is cash maximum?

Cash maximum is the amount of cash that the legal entity can have as a balance in the cash desk, can constantly sustain it without giving account in the bank. The height of the cash maximum is determined by the legal entity and a general act should be passed (Decision for the height of the cash maximum). Same should be done if the organization works on several locations, for each location separately. While making the decision for the height of the cash maximum, it is important to consider two elements: the daily needs of the non-profitable organizations for cash, as well as the technical and other security conditions of keeping the cash which can objectively be insured.


Conditions for paying in cash

The conditions for paying in cash are given in the Law for payment operations and the sub-legal acts and regulations. Some of the special ones are:

-  paying bills for goods and services from other legal entities in the height of Euro 100;
-  payment of salary and other personal incomes of the employees;
-  payment of business trips to people unemployed in the organization, who travel for the organization’s needs, only if they do not receive any compensation for their labor.