WO1994019200A1

WO1994019200A1 - A cash book

Info

Publication number: WO1994019200A1
Application number: PCT/NZ1994/000010
Authority: WO
Inventors: Gavin Dominic O'connell
Original assignee: Connell Gavin Dominic O
Priority date: 1993-02-16
Filing date: 1994-02-16
Publication date: 1994-09-01
Also published as: AU6117394A

Abstract

A cash book (30) for recordal and analysis of business transactions, comprising at least one set of removable pages, wherein each set of pages includes at least one page (1) dedicated to recordal of all business receipts, at least one page (2) dedicated to recordal of all business payments, at least one page (3) dedicated to recordal of the various specific kinds of transactions engaged in by the business, at least one page (6) dedicated to reconciling the cash book balance against the bank statement, and at least one page (5) dedicated to enabling and facilitating an analysis of profitability or cash flow. A method of use of the cash book (30) is also claimed. The cash book (30) also includes a pair of flaps (42, 43) along a top edge (35) of a backing member (31), behind which the flaps (42, 43) can be folded. These flaps (42, 43) are provided to assist in separating column headings (41), that indicate the class of transactions to be entered, from the actual pages of the cash book (30).

Description

A CASH BOOK

TECHNICAL FIELD

This invention relates to a cash book configured and arranged to enable and direct an untrained user to produce an analysis of the business financial records kept therein.

BACKGROUND ART

All businesses, regardless of their size, are obliged to keep records of all of their financial dealings for taxation purposes. These records typically include a breakdown in one form or another of the various transactions to which the business has been a party, and hence, also provide a useful source of information to assist in business decision making.

In small businesses, for example such as owner operated retail outlets, farms etc financial transaction records are usually maintained in a cash book, or similar system, by the owner. Periodically the transactions entered must be analysed so as, for example, to determine tax liability. As the analysis may at times be relatively complex it is usually carried out by a chartered accountant or some other trained professional. Generally speaking the accountant will not be an employee of the business and hence the cash book must be taken from the place of business to him or her for the analysis to be done.

There are two obvious drawbacks to a small business in having its financial records analysed by an outside accountant. Firstly, the cash book is unavailable while the analysis is taking place, hence the business is inconvenienced in that entries can't be made and trends in transactions can't be reviewed. And secondly, the cost in having the accountant do the analysis is a significant one.

It is an object of the present invention to provide a cash book configured and arranged to allow minimal inconvenience to a small business and to facilitate a significant proportion of the analysis being conducted by a person largely untrained in accounting.

SUMMARY OF THE INVENTION

Accordingly, in a first broad aspect of this invention there is provided a cash book for recordal and analysis of business transactions, comprising at least one set of removable pages, wherein each set of pages includes at least one page dedicated to recordal of all business receipts, at least one page dedicated to recordal of all business payments, at least one page dedicated to recordal of the various specific kinds of transactions engaged in by the business, at least one page dedicated to reconciling the cash book balance against the bank statement, and at least one page dedicated to enabling and facilitating an analysis of profitability or cash flow.

Expediently, each set of pages may include an additional page which facilitates calculation of tax liability.

Preferably, the pages dedicated to recordal of business payments and business receipts each include a first section for entry of transaction details and a second section for entry of the transaction value, wherein the second section is divided into a plurality of columns with each column being dedicated to entry of the value of a specific class of transaction.

Desirably, the columns are grouped together into categories of transaction classes, with all the columns in each category being readily identifiable as members of that category, there being an additional column in each category to record for a second time the transaction value of each entry made in each of the various other columns of that category. Advantageously, each page for business receipts or business payments includes a space for totalling the value of entries made in each column, and an additional space for totalling together the totals from all of the columns, with the exception of the additional columns, within the same category to check that the value obtained is the same as the total value of the entries in the additional column, thereby confirming that all entries have been correctly made.

Conveniently, each of the columns in the second section of the pages for recordal of business receipts and business payments is individually identified by way of a number, letter, symbol, or combination of the aforesaid.

Preferably, the cash book includes a flap which can be overlaid onto the top of a said page for recordal of business receipts or a said page for recordal of business payments, the flap being divided into sections, with each section representing a particular column heading for a corresponding particular column of the said page for recordal of business receipts or said page for recordal of business payments, the column headings all relating to a specific business type.

Desirably, the cash book includes two flaps, a first flap which can be overlaid onto the top of a said page for recordal of business receipts, and a second flap which can be overlaid onto the top of a said page' for recordal of business payments.

Advantageously, each column heading of each flap details the specific kinds of transactions to be entered in the corresponding column of the page for recordal of business receipts or page for recordal of business payments, and provides an identifying means for each said specific kind of transaction.

Preferably, each column of the second section of the page for recordal of business payments and/or page for recordal of business receipts includes provision for entering an identifying means adjacent each transaction entry to identify the specific kind of transaction recorded in that column.

In a second broad aspect of this invention, there is provided a method of using a cash bock according to the first broad aspect, comprising the following steps:

a) entering details of a transaction into the relevant sections of either said page dedicated to recordal of business payments or business receipts, and repeating until either the said pages are full or a predetermined time period has passed;

b) totalling the entries made in each column on each page, totalling the totals for each column of each category, except the additional column of each category, and comparing with the total for the additional column of that category to confirm that all of the entries have been correctly made; and,

c) transferring each column total to a prearranged section of the page dedicated to enabling and facilitating an analysis of profitability or cash flow, following instructions for checking entries as instructed on the page, totalling the column totals as instructed on the page to determine cash flow or profitability.

Preferably, the method further includes the step of transferring the total for each said additional column of each category of transaction to the page dedicated to reconciling the cash book balance against the bank statement as instructed on the said page, and totalling the column totals as instructed on the said page to obtain a reconciled balance.

Desirably, the method further includes the step of transferring the column totals to specific locations on the page dedicated to recordal of the various specific kinds of transactions engaged in by the business, dividing up each column total into portions relating to the specific kind of transactions the column total includes.

Advantageously, the method further includes the step of transferring the totals for the additional columns onto the appropriate locations of the additional page which facilitates calculation of tax liability as instructed on the said page and, following the instruction on the said page, determining the tax liability.

BRIEF DESCRIPTION OF THE DRAWINGS

A presently preferred embodiment of the invention will now be described, by way of example only, with reference to the accompanying drawings, which illustrate various pages from a set of removable pages of a cash book according to the present invention, and also a preferred format of the cash book. In particular:

FIGURE 1 illustrates a page dedicated to recordal of business receipts;

FIGURE 2 illustrates a page dedicated to recordal of business payments;

FIGURE 3 illustrates a page dedicated to recordal and analysis of the specific kinds of transactions engaged in by a business; FIGURE 4 illustrates a page divided into two portions, a first portion dedicated to enabling and facilitating an analysis of each flow or profitability and a second portion dedicated to reconciling the cash book balance against the bank statement;

FIGURE 5a illustrates a cash book according to the present invention;

FIGURE 5b illustrates the cash book of figure 5a with one of the flaps overlying the top page; and,

FIGURE 6 illustrates a flap attachable to a cash book according to the present invention.

BEST MODE FOR CARRYING OUT THE INVENTION

According to the present invention there is provided a cash book comprising a plurality of sets of removable pages. The pages are preferably loose leaf. Alternatively, the pages may be of the "tear out" kind, having a line of perforations extending the length of the edge of each page adjacent the spine of the cash book.

Optionally, underlying each removable page there may be provided a copy page intended to remain in the cash book onto which entries made on the removable page are automatically copied.

Referring now to the figures 1 to 4 of drawings, each set of removable pages includes at least one page dedicated to recordal of business receipts, as generally indicated at 1, at least one page dedicated to recordal of business payments, as generally indicated at 2, a page dedicated to recordal and analysis of the various specific kinds of transactions engaged in by the business, as generally indicated at 3, and a page divided into two portions, as generally indicated at 4, having a first portion 5 dedicated to enabling and facilitating an analysis of cash flow or profitability, and a second portion 6 dedicated to reconciling the cash book balance against the bank statement.

Each page 1 and page 2 comprises a first section 7 and a second section 8. The first section 7 is for entering details of the transaction, such as date, to or from whom payment was made or received, what the transaction related to, and the receipt or cheque number. The second section 8 comprises a plurality of columns 9 into which the value of each transaction can be entered.

The columns 9 are individually identified by way of column number. Alternatively, a letter or letter and number combination could be used for identification.

Each column 9 relates to a specific class of transaction, so that an entry in a particular column 9 will only be made if a particular transaction is of the corresponding specific class.

Related columns 9 are grouped into categories 13,14, for example, Goods and Services Tax assessable (claimable) and non-assessable (non-claimable). Each category 13,14 includes an additional column 25,26,(11,12) into which an entry is made each time an entry is made in one of the other columns 9 of that category 13,14. Thus, the columns 25,26 (11,12) keep a record of all the entries in a particular category 13,14.

Each of the columns 9 of the page 2 include an identifying means to differentiate each specific kind of transaction which is a member of the class of transactions recordable in that particular column 9. The identifying means comprises a letter relating to each kind of transaction which can be entered adjacent the value of the transaction recorded. Alternatively a number, a symbol or combination of the aforesaid could be used.

At the end of each column 9 there is provided a space 10 in which the total of all the entries in that column 9 may be entered.

Each page 1 and 2 includes a means 15 for checking that the totals for the columns 9 are correct. The checking involves totalling the total for the columns 9 of each category 13,14 and comparing the value obtained against the total for the corresponding additional columns 25,26 (11,12). If the values are the same the entries are likely to be correct.

For ease of recognition all of the columns 9 in each of the categories 13,14 are identified as such. This may be achieved by overmarking as shown in figures 1 and 2, or by the use of different shading or colouring.

In use, details of each transaction, depending on whether it is a payment or a receipt, are entered into the first section 7 of page 2 or 1 respectively. Next the category of transaction is considered, then the class, and then the value of the transaction is entered in the appropriate column 9. A corresponding entry is made in the additional column 25 or 26 (11 or 12).

Once the page 1 or 2 is full of entries, or once a particular date, such as balance date occurs the entries for each column 9 are totalled and entered at the space 10. The checking operation using the means 15 described above is also performed.

Page 3 is used to analyse the information recorded on pages 1 and 2. The total for each column 9 and the column number is entered at the beginning of one row 16 of a plurality of rows set out on page 3. If the column total is made up of different kinds of transactions, as may be the case for the columns of page 2, each kind can be separated out and the value of the transactions of that kind entered along with the letter identifying that particular kind in each case.

The information provided on page 3 is useful to keep track of stock, determine major areas of expenditure, losses, profits etc.

As noted above, page 4 is divided into portions 5 and 6. Portion 5 relates to an analysis of cash flow or profitability.

Portion 5 is divided up into a series of rows 17 and columns 18. Each of the rows 17 relates to a column

9 from pages 1 and 2, is that the various classes of transactions are listed, one per row. The rows 17 are grouped together into the same categories 13,14 as on pages 1 and 2. The columns 18 include a reference 19, a column for transaction class description 20, column number 21 forms pages 1 and 2, a column 22 for entry of a code by an accountant, and a debit 23 and credit 24 value column. At the end of each category

13,14 a totalling check 27 is provided to confirm that the transfer of transaction details from pages 1 and

2 has been correctly carried out.

In use the totals from each of the columns 9 of pages 1 and 2 are transferred into either the appropriate debit 23 or credit 24 column of portion 5. The totalling check 27 is then carried out. Finally all the entries in the debit 23 and credit 24 columns are totalled to obtain a balance from which it is possible to determine if there has been a nett cash flow from or to the business, or whether the business has been operating at a profit or a loss.

Portion 6 is divided into two sections, a first section

28 set out to enable the cash book balance since the last balance to be calculated, and a second section

29 to reconcile the bank statement with the cash book balance.

The first section 28 is set out with instructions on how to proceed; all the entries from the additional columns 25 and 26 on page 1 are totalled, as are the entries from the additional columns 11 and 12 on page 2.

If the cash book balance at last balance was in credit the value at balance is added to the total of page 1. If in debit the value is added to the total of page 2.

Finally, the cash book balance is found by subtracting the total of page 2 (and if in debit, the previous cash book balance) from the total of page 1 (together with the previous cash book balance if in credit).

Section 29 involves following the instructions provided, which basically requires that the latest bank statement be updated by taking into account any deposits made since the date of the statement, together with any cheques written but not appearing.

The final balance of the bank statement should equal the cash book balance.

Referring now also to figures 5a to 6, the cash book, as generally indicated at 30 in figures 5a and 5b, can include a rigid backing member 31, shaped and sized slightly larger than the pages 1 to 4. The backing member 31 has a front face 32 with a left side edge 33, a right side edge 34, top edge 35 and bottom edge 36. Extending outwardly of the front face 32 adjacent the left side edge 33 is a clip 37 on which the pages 1 to 4 can be mounted.

In this regard, each of the pages 1 to 4 can include a left side margin strip 38 connected, by a line of perforations 39, to the page proper. The margin strip 38 includes spaced apart apertures 40 via which the page 1,2,3 or 4 can be mounted on the clip 37.

As each page 1,2,3 or 4 is completed it can be torn out of the cash book 30, leaving behind the corresponding margin strip 38.

To assist a user in determining the correct column 9 of the relevant page 1,2 into which to make a particular entry column headings 41 can be provided which indicate the class of transactions to be entered, the correct column 9, and include a list of the specific kinds of transactions to be entered. The column headings 41 may be provided at the top margin of the page 1,2.

As the column headings 41 should ideally be closely tailored to the specific business operated by the user, from a cost and convenience standpoint it is more preferable that the column headings 41 be separate from the pages 1,2 themselves.

In this regard, the cash book 30 includes a pair of flaps 42,43 along the top edge 35 of the backing member 29. One of the flaps 42 includes column headings 41 for the columns 9 of the page 1 dedicated to recordal of transactions for the corresponding column 9 of the page 1 appropriate to a specific kind of business enterprise. Similarly, the other flap 43 includes column headings 41 for the columns 9 of the page 2 dedicated to recordal of business payments, with each column heading 41 listing specific kinds of transactions to be entered in the corresponding column 9 appropriate to the same specific kind of business enterprise.

When not required the flaps 42,43 can be folded back out of the way, as shown in figure 5a, behind the backing member 31. If entries are to be made on the page 1 dedicated to recordal of business receipts the flap 42 can be folded forwarded to overlap the top margin of that page 1. If entries are to be made on the page 2 dedicated to recordal of business payments both flaps 42 and 43 need to be folded forward to overlap the top margin of the page 2, the flap 43 also overlapping the flap 42.

The flaps 42,43 can be manufactured separately from the other components of the cash book 30. This enables flaps 42,43 for very specific kinds of business enterprises to be produced, such as, for example, a doctor, a sheep farmer, a convenience store operator, a chemist etc. The appropriate flaps 42,43 can then be glued or otherwise attached to the backing member 31. Desirably, the flaps 42,43 include a self-adhesive strip 44 for this purpose, as shown in figure 6.

Alternatively, each flap 42,43 may comprise a folded card or the like which can be slipped into place over the top margin of the relevant page 1,2 when required.

It has been found that the cash book described above is simple and convenient to use, even by those not schooled in accounting practice.

In summary the following aspects provide significant advantages over known cash books, and satisfy the objects of the invention as set out above:

1. The general features of construction of the cash book enable the manintaining of records to continue while the removed pages are away for anaylsis by an account, thereby minimising inconvenience to the business.

2. The combination of clear layout, using column numbers, transaction category groupings differentiated by colouring, shading or the like and letters to distinguish kinds of transaction within the same class all contribute to enabling persons un-schooled in accounting practice to main- -tain business records and conduct basic analysis, thereby reducing accounting costs.

3. The use of totalling checks to check on the various steps in the analysis process ensures the accuracy of the process and gives confidence to the unschooled user.

4. Because the bulk of the analysis can be conducted by the cash book keeper the accounting costs are lower, the role of the accountant being substantially reduced to that of entering references and coding, together with checking.

5. The facility of having flaps setting out column headings enables the cash book to be specifically tailored to a particular business type, thereby making use of it by unschooled users much easier.

It will readily be appreciated that additional pages may be added to the cash book, as noted above, to provide such things as Goods and Services Tax returns, PAYE returns, Provisional Tax liability etc, all of which can follow along similar lines to the pages described above.

Additional advantages of the present invention will become apparent to those skilled in the art after considering the principles in particular form as discussed and illustrated.

Accordingly, it will be appreciated that changes may be made to the above described embodiment of the invention without departing from the principles taught herein. In particular, layout etc may be altered depending on the function of the page and to suit different applications. Further, flaps may be provided with blank column headings to enable even more particularisation of the cash book.

Finally, it will be understood that this invention is not limited to the particular embodiment described and illustrated, but is intended to cover all alterations, additions or modifications which are within the scope of the appended claims.

Claims

I CLAIM

1. A cash book for recordal and analysis of business transactions, characterised in that the cash book comprises at least one set of removable pages, wherein each set of removable pages includes at least one page dedicated to recordal of all business receipts, at least one page dedicated to recordal of all business payments, at least one page dedicated to recordal of the various specific kinds of transactions engaged in by the business, at least one page dedicated to reconciling the cash book balance against the bank statement, and at least one page dedicated to enabling and facilitating an analysis of profitability or cash flow.

2. A cash book according to claim 1 further including at least one page which facilitates calculation of tax liability.

3. A cash book according to claim 1 wherein each page dedicated to recordal of business payments and each page dedicated to recordal of business receipts include a first second for entry of transaction details and a second second for entry of the transaction value, wherein the second section is divided into a plurality of columns with each column being dedicated to entry of the value of a specific class of transaction.

4. A cash book according to claim 3 wherein the columns are grouped together into categories of transaction classes, with all the columns in each category readily identifiable as members of that category, there being an additional column in each category to record for a second time the transaction value of each entry made in each of the various other columns of that category.

5. A cash book according to claim 4 wherein each page for recordal of business receipts or for recordal of business payments includes a space for totalling the value of entries made in each column, and an additional space for totalling together the totals from all of the columns, with the exception of the additional columns, within the same category to check that the value obtained is the same as the total value of the entries in the additional column, thereby confirming that all entries have been correctly made.

6. A cash book according to claim 4 wherein each of the columns in the second section of the pages for recordal of business receipts and business payments is individually identified by way of a number, letter, symbol or combination of the aforesaid.

7. A cash book according to claim 4 wherein each column of the second section of the page for recordal of business payments includes provision for entering an identifying means adjacent each transaction entry to identify the specific kind of transaction recorded in that column.

8. A cash book according to claim 4 wherein each page for recordal of business payments and each page for recordal of business receipts includes a column heading for each column, all of the said column headings relating to a specific business type.

9. A cash book according to claim 8 wherein each column heading details the specific kinds of transactions to be entered in the corresponding column, and provides an identifying means for each said specific kind of transaction.

10. A cash book according to claim 4 wherein the cash book includes a flap which can be overlaid onto the top of a said page for recordal of business receipts or a said page for recordal of business payments, the flap being divided into sections, with each section representing a particular column heading for a corresponding particular column of the said page for recorded of business receipts or said page for recordal of business payments, the column headings all relating to a specific business type.

11. A cash book according to claim 10 wherein the cash book includes two flaps, a first flap which can be overlaid onto the top of a said page for recordal of business receipts, and a second flap which can be overlaid onto the top of a said page for recordal of business payments.

12. A cash book according to claim 11 wherein each column heading of each flap details the specific kinds of transactions to be entered in the corresponding column of the page for recordal of business receipts or page for recordal of business payments, and provides an identifying means for each said specific kind of transaction.

13. A cash book according to claim 1 wherein the removable pages are loose leaf in the cash book.

14. A cash book according to claim 1 wherein the removable pages are fixed to a margin, but can be torn therefrom along a perforated line.

15. A cash book according to claim 1 wherein the removable pages are fixed to a margin, but can be torn therefrom along a perforated line, the margin providing loose leaf mounting of the .pages in the cash book.

16. A cash book according to claim 1 wherein associated with each removable page is a copy page, which copy page is intended to remain in the cash book, each entry made on a removable page being automatically copied onto a corresponding said copy page.

17. A cash book according to claim 4 wherein the categories of columns are differentiated by differential shading or crosshatching.

18. A cash book according to claim 1, further comprising a backing member and clip means, the backing member having a front face, a back face, a left side edge, a right side edge, a bottom edge and a top edge, such that the clip means extends outwardly of the front face of the backing member to enable the removable pages to be releasably retained against the backing member's front face.

19. A cash book according to claim 18, further comprising a flap extending from the backing member, the combination of the flap and backing member being configured and arranged such that the flap can be folded to cover the top portion of a said page dedicated to recordal of all business transactions or of a said page dedicated to recordal of all business payments.

20. A cash book according to claim 19 wherein each page dedicated to recordal of business payments and each page dedicated to recordal of business receipts include a first section for entry of transaction details and a second section for entry of the transaction value, wherein the second section is divided into a plurality of columns, with each column being dedicated to entry of the value of a specific class of transaction, the flap providing column headings for each of the columns of either the page dedicated to recordal of business receipts or the page dedicated to recordal of business payments.

21. A cash book according to claim 20 having two flaps extending from the backing member, one said flap being capable of overlapping the other, wherein one said flap provides column headings for the pages dedicated to recordal of business payments and the other said flap provides column headings for the pages dedicated to recordal of business receipts.

22. A cash book according to claim 21 wherein the flaps are affixed to and extend from the back face of the backing member adjacent its top edge, said flaps including a fold to enable each to be folded forward over the top portion of the pages dedicated to recordal of business payments and the pages dedicated to recordal of business receipts, or back against the back face of the backing member.

23. A cash book according to claim 22 wherein the column headings are all relevant to a specific business type.

24. A cash book according to claim 21 wherein the flaps are affixed to the backing member prior to use of the cash book, the flaps affixed having column headings tailored to the specific business type of the intended user.

25. A cash book according to claim 24 wherein the flaps include an adhesive strip to enable attachment to the backing member.

26. A cash book according to claim 3 further comprising a planar member having a portion which can be folded to form a flap, the flap including column headings for the columns of either the pages dedicated to recordal of business payments or the pages dedicated to recordal of business receipts, the column headings being tailored to a specific business type, the appropriate pages for recordal of business payments or business receipts each having a top portion which, in use, can be aligned with and slide beneath the flap in order that each column heading is aligned with a corresponding column.

27. A method of using a cash book according to claim 7, comprising the following steps:

28. A method according to claim 27 further including the step of transferring the total for each said additional column of each category of transaction to the page dedicated to reconciling the cash book balance against the bank statement as instructed on the said page, and totalling the column totals as instructed on the said page to obtain a reconciled balance .

29. A method according to claim 28 further including the step of transferring the column totals to specific locations on the page dedicated to recordal of the various specific kinds of transactions engaged in by the business, dividing up each column total into portions relating to the specific kind of transactions the column total includes.

30. A method according to claim 29 further including the step of transferring the totals for the additional columns onto the appropriate locations of the additional page which facilitates calculation of tax liability as instructed on the said page and, following the instruction on the said page, determining the tax liability.

31. A cash book substantially as herein described or exemplified with reference to the accompanying drawings.