Does the cash book have to be in paper form?
Does the cash book have to be in paper form?
Cash accounting
In accordance with Article 14, Parts 1 and 2 of the Accounting Law (GL), cash contributions and disbursements received from the company's treasury are recorded in the cash book. The cash book shall be maintained for each day in which cash receipts or expenses have occurred, indicating the cash balance at the beginning of the day, the total amount of cash receipts and cash expenses, and the cash balance at the end of the day. If the company's average cash receipts for the working day of the previous calendar month do not exceed 500 euros, the company can organize the cash book once a week - on the last working day of the week.
Article 14, Part 3 of the GL states that the cash book may not be kept if the company:
Regulations of the Cabinet of Ministers (MK) No. 625 "Requirements for justification documents of cash receipts and cash expenditures and for keeping the cash book" determine the requirements for justification documents of cash receipts and cash expenditures.
In accordance with paragraphs 3 and 4 of MK Regulation No. 625, cash receipts and cash expenditure warrants must state:
Special requirements are set only for the cash book, which is prepared in paper form - manually. When preparing cash receipts and expenditure orders electronically, entries are automatically entered into the cash register using an accounting computer program, therefore special requirements for an electronic cash book are not required and have not been developed.
According to GL Article 33, Part 1, the company manager is responsible for accounting in accordance with GL requirements, and the company manager is obliged to ensure the development and issuance of accounting organization documents and compliance with the procedures set forth in them in the company.
Considering that more and more companies are moving to a digital environment and avoiding documents in paper form, it is not understandable that a company wants to print cash receipts and expenditure orders, especially when all information is available in one place electronically. Confusion could be caused by the need for the attribute "cashier's signature" in both cash receipts and expenditure warrants. But it should be remembered that Clause 8 of Regulation No. 625 of the Cabinet of Ministers stipulates that if the justification document (e.g. list of costs, application, invoice) specified in the cash expenditure warrant as a justification for the payment and attached to the cash expenditure warrant is the head of the company or a person designated by him a signed order or other type of confirmation for issuing cash, the cashier's signature on the cash disbursement order is not mandatory.
In the described situation, the movement of cash in the company's treasury is relatively uniform and transparent. Therefore, in accordance with regulatory enactments and documents of the accounting organization, it is possible to apply justification documents for each type of warrant:
In accordance with Article 14, Parts 1 and 2 of the Accounting Law (GL), cash contributions and disbursements received from the company's treasury are recorded in the cash book. The cash book shall be maintained for each day in which cash receipts or expenses have occurred, indicating the cash balance at the beginning of the day, the total amount of cash receipts and cash expenses, and the cash balance at the end of the day. If the company's average cash receipts for the working day of the previous calendar month do not exceed 500 euros, the company can organize the cash book once a week - on the last working day of the week.
Article 14, Part 3 of the GL states that the cash book may not be kept if the company:
- maintains accounting in a simple record system and registers cash receipts and expenses in the economic activity revenue and expense accounting journal or revenue accounting register;
- cash receipts are registered using electronic devices and equipment for recording taxes and other payments, and the cash received during the working day is deposited into the company account opened by the payment service provider (regulated by the Law on Payment Services and Electronic Money);
- keeps accounts in a simple entry system and registers cash receipts and expenses in a cash flow accounting journal.
Regulations of the Cabinet of Ministers (MK) No. 625 "Requirements for justification documents of cash receipts and cash expenditures and for keeping the cash book" determine the requirements for justification documents of cash receipts and cash expenditures.
In accordance with paragraphs 3 and 4 of MK Regulation No. 625, cash receipts and cash expenditure warrants must state:
- for the name, number and date of the document;
- information about the recipient/issuer of cash – a company or a natural person;
- information about the payer/recipient of cash - a company or a natural person;
- for a description of the justification for cash contributions/disbursements (if necessary, indicate the name, number and date of another supporting document);
- for the name or code of the currency(s); amount of cash to be received/disbursed, expressed in numbers;
- for the signature of the recipient of the cash, if there is no justification document in the attachment confirming the payment of the cash; for the cashier's signature.
Special requirements are set only for the cash book, which is prepared in paper form - manually. When preparing cash receipts and expenditure orders electronically, entries are automatically entered into the cash register using an accounting computer program, therefore special requirements for an electronic cash book are not required and have not been developed.
According to GL Article 33, Part 1, the company manager is responsible for accounting in accordance with GL requirements, and the company manager is obliged to ensure the development and issuance of accounting organization documents and compliance with the procedures set forth in them in the company.
Considering that more and more companies are moving to a digital environment and avoiding documents in paper form, it is not understandable that a company wants to print cash receipts and expenditure orders, especially when all information is available in one place electronically. Confusion could be caused by the need for the attribute "cashier's signature" in both cash receipts and expenditure warrants. But it should be remembered that Clause 8 of Regulation No. 625 of the Cabinet of Ministers stipulates that if the justification document (e.g. list of costs, application, invoice) specified in the cash expenditure warrant as a justification for the payment and attached to the cash expenditure warrant is the head of the company or a person designated by him a signed order or other type of confirmation for issuing cash, the cashier's signature on the cash disbursement order is not mandatory.
In the described situation, the movement of cash in the company's treasury is relatively uniform and transparent. Therefore, in accordance with regulatory enactments and documents of the accounting organization, it is possible to apply justification documents for each type of warrant:
- cash receipts order – income from cash registers (cash receipt);
- cash disbursement order:
- salary or salary advance (lists of salary or salary advance); collectors deposit money in the bank (bank statement).