FGS – Cashbook: Comprehensive Guide to Recording TransactionsA cashbook is a fundamental accounting tool used to record all cash receipts and payments in chronological order. When implemented correctly, an FGS Cashbook (Financial General System — Cashbook) provides a reliable, real-time view of cash flows, helps detect errors or fraud early, and supports accurate financial reporting. This guide walks through what an FGS Cashbook is, why it matters, how to set one up, practical recording procedures, reconciliation, common pitfalls, and tips for efficient ongoing management.
What is an FGS Cashbook?
An FGS Cashbook is a structured ledger within the Financial General System designed specifically to track cash inflows and outflows. It typically records:
- Date of transaction
- Description or reference (invoice number, receipt ID)
- Source or payee
- Cash received (debit column)
- Cash paid out (credit column)
- Running balance
Depending on configuration, an FGS Cashbook may be a single column (cash only), two-column (cash and bank), or three-column (cash, bank, and discounts/other). The system centralizes transaction data so that cash movements are transparent, auditable, and available for reporting.
Why use an FGS Cashbook?
- Immediate visibility of cash position to support day-to-day decisions.
- Improved accuracy compared with ad-hoc receipts and slips.
- Audit trail: chronological record with references for verification.
- Simplified reconciliation with bank statements and petty cash.
- Compliance: supports statutory reporting and tax audits.
Setting up your FGS Cashbook
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Choose the format
- Single-column: only cash transactions. Best for very small operations with minimal banking.
- Two-column: separate columns for cash and bank transactions. Suitable for most businesses.
- Three-column: cash, bank, and discounts/other adjustments.
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Define fields and references
- Date, Reference/Receipt No., Description, Account Code, Debit (received), Credit (paid), Balance.
- Add optional fields: Department/Project, Cost Center, Payment Method.
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Chart of accounts mapping
- Map common source or payee types to account codes (sales, loans, supplier payments, salaries, taxes) to speed posting and reporting.
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User roles and controls
- Segregate duties: one user records transactions, another reviews/reconciles.
- Set permissions for editing past entries and voiding transactions.
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Templates and automation
- Create templates for recurring receipts/payments and automated numbering for references.
- Integrate with point-of-sale (POS), billing, or bank feeds where available.
Recording transactions: step-by-step
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Capture source documents immediately
- Use receipts, deposit slips, invoices, cash payment vouchers. Scan or photograph paper documents and attach them in the FGS when possible.
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Enter transaction details accurately
- Date: actual transaction date.
- Reference: receipt number or invoice.
- Description: concise reason (e.g., “Office supplies — INV1234”).
- Debit/Credit: debit for cash receipts (increase), credit for cash payments (decrease).
- Account code: select the mapped account.
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Update running balance
- Ensure the running balance changes correctly after each entry. In a computerized FGS, this updates automatically.
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Add supporting notes for unusual transactions
- For refunds, intercompany transfers, or adjustments, note the justification and attach supporting documents.
Example entry (conceptual):
- Date: 2025-06-12 | Ref: RCPT-1007 | Description: Cash sales (Store A) | Debit: 1,250.00 | Credit: — | Balance: 6,430.00
Petty cash handling within FGS Cashbook
- Establish a petty cash float with a fixed amount (e.g., $200).
- Record a replenishment entry when the float is low; attach expense receipts.
- Use petty cash vouchers for each disbursement and code the expense account.
- Periodically audit petty cash physically and reconcile to the cashbook.
Reconciliation process
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Regular schedule
- Reconcile daily for high-volume operations; weekly or monthly otherwise.
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Compare cashbook to bank statements and cash on hand
- Match deposits, withdrawals, bank fees, and interest.
- Investigate standing items: outstanding checks, deposits in transit.
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Adjustments and corrections
- Post bank charges and direct debits to the cashbook with reference to the bank statement.
- For errors, use clear adjusting entries and keep original entries intact for audit trail.
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Reconciliation report
- Produce a reconciliation summary showing opening balance, matched items, outstanding items, and adjusted closing balance.
Common errors and how to avoid them
- Duplicate entries — enforce unique reference numbers and implement validation rules.
- Late recording — capture receipts immediately via mobile entry or scanning.
- Misclassified transactions — maintain a simple, clear chart of accounts and train users.
- Unauthorized edits — restrict permissions and use audit logs.
- Neglected reconciliations — schedule recurring reminders and assign responsibility.
Controls and auditability
- Audit trail: enable logging of who entered or changed each transaction and when.
- Approval workflows: for high-value payments, require manager approval before final posting.
- Backup and retention: maintain secure backups and retain source documents per regulatory requirements.
- Physical controls: secure cash in safes and limit access to authorized personnel.
Reporting and analytics
Use the FGS Cashbook data to generate:
- Daily/weekly/monthly cash position reports.
- Cash flow summaries by account, department, or project.
- Variance analysis vs. budget.
- Ageing of outstanding receipts or checks.
Visualizations (charts of cash balance over time, inflows vs outflows) help stakeholders quickly grasp trends.
Best practices checklist
- Standardize references and descriptions.
- Integrate receipt capture (mobile/photo) with the cashbook.
- Reconcile regularly and document adjustments.
- Segregate duties and use approvals for large payments.
- Keep the chart of accounts concise for cashbook entries.
- Train staff on data entry, classification, and security.
Troubleshooting tips
- If running balance is off: run a trial balance of cashbook entries vs. opening plus transactions; look for missing or duplicated entries.
- If bank reconciliation shows unexplained differences: verify dates and cutoffs; check for unrecorded bank fees or direct debits.
- For missing receipts: require duplicate receipts from vendors or rely on bank evidence where available.
Conclusion
An FGS Cashbook, when correctly configured and consistently maintained, becomes the backbone of reliable cash management and financial transparency. Clear procedures, strong controls, and regular reconciliations reduce errors and support timely decision-making. Follow the setup steps, adopt the best practices, and use the reporting capabilities to keep cash flows under control and auditable.
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