Cash limit at the till
The Accounting Law limits the amount of cash that can be stored on the trading floor after the end of the working day (Instruction of the Central Bank of the Russian Federation dated March 11, 2014 No. 3210-U, as amended on June 19, 2017).
The amount in excess of the limit is handed over to the bank. Companies and individual entrepreneurs set their own limit on the balance of money in the cash register. There are no restrictions, so it can be any convenient amount. It is important to follow two rules:
- The limit is indicated in an administrative document, most often this is an order from the director. The order is presented to all employees who work with money under signature.
- There are exceptions when the limit can be exceeded: for example, on days when salaries or benefits are issued. But such intervals should not exceed 5 working days.
For violation of these requirements, fines of up to 5 thousand rubles are possible for individual entrepreneurs and employees and up to 50 thousand rubles for legal entities.
Important! Small businesses and entrepreneurs can use a simplified method of cash accounting. This applies to companies and individual entrepreneurs with revenues of up to 800 million rubles per year and a staff of up to 100 employees. In their authorized capital, municipalities, foundations and public organizations participate no more than 25%, and foreign companies - no more than 49%.
Analysis of various types of cash flows of an organization
Here we should consider in detail why we need an analysis of the movement of various types of cash flows of an organization (CAF). Well-organized financial accounting of the moments and values of inflows (IAP) and outflows (ODP) of funds at an enterprise makes it possible to determine the financial stability and profit of the company. This type of analysis is also called operational, since the calculations take into account income and costs from operating (current) activities.
Analysis of the inflows and outflows of an enterprise's funds is an important part of financial management, since it is on its basis that a strategic development plan for the company is drawn up, taking into account the self-financing capabilities of the enterprise, its financial potential and profitability.
Increasing financial resources directly affects the economic well-being of the enterprise. Without generating a stable profit, it is impossible to cover the company's debt obligations. Financial shortages usually lead to a crisis. An excess of available funds usually indicates an unprofitable enterprise.
The company's unprofitability is due to two main factors - inflation and missed investment opportunities. An enterprise can receive additional income from profitable investment of excess funds. Analysis of the movement of various types of cash flows of an organization allows us to identify its actual financial position.
Analysis of aggregate indicators of inflows and outflows of funds is the most important characteristic of the stability and sustainability of a company. Only the analytical method makes it possible to determine the effectiveness of financial management and identify the financial potential of an enterprise.
To analyze the financial condition of the company (to calculate the ADP), it is necessary to calculate the outflow (ODP) and inflow (APP) of funds for the period of time for which the loan, credit or loan was taken out. For example, when borrowing funds for 1 year, the analysis (ADP) is done on an annual basis. If the loan term is up to 90 days, then an analytical calculation (ADP) is made for the quarter.
Elements of financial inflow for the period:
- A company's profit earned in one specific period.
- Depreciation accrued over one specific period.
- Release of financial resources from: inventories, accounts receivable, fixed assets, other assets.
- Increase in accounts payable.
- Growth of other liabilities.
- Increase in share capital.
- Issuance of new loans.
Elements of financial outflow for the period:
- Payments: taxes, interest, dividends, fines and penalties.
- Additional investments in: inventories, accounts receivable, other assets, fixed assets.
- Reducing accounts payable.
- Reduction of other liabilities.
- Outflow of share capital.
- Repayment of loans.
An indicator of a company's total cash flow (TCF) is the difference between the inflow (TCF) and outflow (TCF) of funds. Any changes in the financial reserves of the enterprise, accounts receivable and payable, other assets and liabilities, fixed assets in one way or another affect the cash flow indicator. To determine the real degree of such influence, it is necessary to compare the indicators of residual funds for various items of inventories, debtors, and creditors at the beginning and end of a certain time period.
If an increase in the balance of financial reserves, debtors and other assets for a specific period is detected, then the final result of the calculation is recorded with a “-” sign and indicates an outflow of money. A decrease in the balance of funds is recorded with a “+” sign and indicates an influx of capital. An increase in creditors and other liabilities is considered as an inflow of funds, and a decrease in them is an outflow with a “-” sign.
When analyzing the movement of various types of cash flows of an organization, it is necessary to take into account some features in determining the inflow and outflow of funds. This is due to changes in fixed assets. When performing calculations, one should take into account not only the increase or decrease in the value of their balance over a certain time period, but also the final indicator of the sale of part of fixed assets for a specific period. If the sales price exceeds the book value, this indicates an influx of funds. If the balance sheet value exceeds the selling price, then we are talking about an outflow.
The inflow or outflow of funds due to changes in the value of fixed assets is calculated using the formula:
Inflow (outflow) of funds due to changes in the value of fixed assets = Cost of fixed assets at the end of the period - Cost of fixed assets at the beginning of the period + Results of sales of fixed assets during the period.
The indirect analytical method of ADP is based on grouping the elements of inflow and outflow of funds into areas of management, which in turn are divided into blocks:
- enterprise profit management;
- inventory and settlement management;
- management of financial obligations;
- tax and investment management;
- management of the ratio of equity capital and loans.
ADP by direct analytical method is performed as follows:
Total Cash Flow (Net Cash) = Increase (decrease) in cash from operating activities + Increase (decrease) in cash from investing activities + Increase (decrease) in cash from financing activities.
Calculation of the first term:
Revenue and sales - Payments to suppliers and personnel + Interest received - Interest paid - Taxes.
Calculation of the second term of the total cash flow:
Proceeds from the sale of fixed assets - Capital investments.
Calculation of the third term:
Loans received - Repayment of debt obligations + Issue of bonds + Issue of shares - Payment of dividends.
To perform an ADP, it is necessary to have data for at least three past years. If an enterprise has a stable excess of inflows over outflows of funds, then it can be considered financially stable and creditworthy. Even a short-term excess of outflows over inflows, as well as all fluctuations in the value of the total DP, indicate insufficient stability and low creditworthiness of the company.
If the amount of outflow systematically exceeds the amount of inflow, then the enterprise is characterized as uncreditworthy. A positive total DP (inflows exceed outflows) indicates the size of the tolerable loan that a firm can obtain.
Analysis of different types of cash flows of an organization allows us to determine the weak link of financial management. For example, the cause of outflow may be insufficiently thought-out management of financial reserves, settlements (debtors and creditors), and financial payments (taxes, interest, dividends).
Identifying deficiencies in capital management is necessary for the correct development of lending terms, which will be reflected in the loan agreement. For example, if the main reason for the outflow of finance is the excessive diversion of funds into payments, then maintaining the turnover of accounts receivable during the entire period of using the loan at a certain level can become a favorable condition for lending.
If the reason for the outflow was an insufficient share capital ratio, then the main condition for lending can be considered compliance with a certain standard level of the financial leverage ratio (leverage) - management of the company's assets and liabilities in order to make a profit.
It is more convenient to analyze the inflow and outflow of funds using a report on the flow of funds. In accordance with the international standard IAS7, “Report on changes in financial position” (put into effect on the territory of the Russian Federation by Order of the Ministry of Finance of Russia dated December 28, 2015 N 217n) is the main source of information for analysis (ADP). It is compiled not according to the sources and directions of movement of funds, but according to the areas of activity of the organization - operating (current), investment and financial.
When drawing up a statement of cash flows and changes in the financial position of the enterprise, the indicators of cash received by the organization as a result of its activities are determined:
- operating room (current);
- investment;
- financial.
Balance sheet and income statement data are used to generate the cash flow statement.
Accounting for expenses using cash
In business, not everything can be bought with paper money. A complete list of expenses for which cash can be used is available in Directives of the Central Bank of the Russian Federation No. 3073-U dated October 7, 2013. Some spending has a limit, others do not. For example, without restrictions, a company or individual entrepreneur can spend cash for the following purposes:
- issuing salaries, benefits, bonuses and any rewards to employees;
- travel expenses;
- payments to the individual entrepreneur himself.
Other expenses are limited:
- refund to the buyer when returning the goods;
- expenses for the needs of the store (stationery, soap, cash register supplies);
- payment for supplies of goods;
- payment for cleaning, utilities, rent, etc.
Let's take a closer look at the types of expenses using cash.
Payment for supplies to the store . When making payments to suppliers in 2021 under one contract, the amount of cash should not exceed 100,000 rubles. Payments above this amount are made in cashless form. And if the limit is exceeded, fines of up to 5 thousand rubles are possible for officials and individual entrepreneurs and up to 50 thousand rubles for a legal entity.
When paying for goods received in cash, expenses are recorded using a cash receipt order (RKO). It is signed by the director and accountant. Information on cash settlements is entered into the cash book.
Issuance of salaries and benefits . There are no limits on cash payments to employees. To record such expenses, pay slips are filled out.
Refund to the buyer . The law requires that money be returned in the same way that the product or service was paid for: for example, if the buyer paid in cash, he cannot have the amount returned to his bank card. The cashier makes a return at the request of the buyer and creates a return receipt, after which the accountant draws up a cash order and payment order.
Issuance of money on account . Upon reporting, employees are given cash for business trips or for the store’s business needs; there are no restrictions here. There is one spending scheme: the employee receives money from the cash register, spends it on agreed purposes and reports to the company. All such operations are carried out upon the application of an accountable person or an order from the organization signed by the director. The document states:
- Full name of the accountable person;
- the purpose of issuing money (business trip, economic necessity);
- the period for which the employee receives the amount;
- size of the amount;
- date and signatures of responsible persons.
Having such a document in hand, the accountant draws up cash settlements, makes an entry in the cash book, and after that can give the employee money from the cash register.
When an employee spends money for the specified purposes, he draws up an advance report and attaches documents to it to confirm expenses: tickets, cash and sales receipts, etc. After this, the expense can be recognized. If the employee does not confirm the expenses with documents, he will have to accept the expenses as income of the individual and pay personal income tax and insurance premiums on them.
If an employee had to spend personal money to complete a task, he writes an application for compensation of expenses and also confirms it with documents on expenses.
Issuing money to an individual entrepreneur to himself . There are no restrictions on these expenses. An individual entrepreneur can take money from the cash register for personal needs by drawing up an expense cash order. The law requires only one thing: not to spend these amounts on business.
Why do you need to control your budget?
At work, whenever they ask me about money, my answer that “I have a savings system” leads my interlocutors to the state that “I’m greedy and don’t give money well.” And they never understand that I just manage my budget and have everything written out in it.
And this is not about greed at all, but simply about the ability to manage a budget and take everything into account. And it was this approach that helped me now, during quarantine, not to depend on anyone or anything.
I'll be honest, it wasn't always like this. I went through a lot of “money” trainings, read a lot of books, and to this day I read literature that deals with money issues. And I plan to continue my education in this matter. It is not only useful, but also very interesting and exciting to manage your budget.
Controlling your cash flow will bring you extra money if you can reduce your expenses. Know that the more you save, the more peace and stress you will have in your life. You will learn to please yourself with very simple things and feel the “taste of life.”
Store cash income accounting
Basically, the cash that stores receive is payment for goods and services by individuals. But sometimes these are also returns from suppliers, amounts from defendants after trials, compensation for losses, etc.
The arrival of cash at the cash desk is formalized with a cash receipt order (PKO) and data about the PPO is entered into the cash book. Less often, cash receipts are documented with other additional documents: TORG-12 invoice, shortage statements, etc.
Simplified cash accounting for individual entrepreneurs. Individual entrepreneurs can work according to simplified rules of cash discipline. They are not required to create cash registers and cash registers, or maintain a cash book. But if an individual entrepreneur has officially registered employees, he must draw up pay slips and other papers that confirm the payment of wages (Instruction of the Central Bank of the Russian Federation No. 3210-U dated 03/11/2014 and Instruction of the Central Bank of the Russian Federation No. 3073 dated 10/7/2013).
Postings for cash accounting
Cash is accounted for in account 50 “Cashier”; subaccounts can be opened to it. Here are examples of the most common transactions when working with cash.
- Dt 50 “Cashier” Kt 90 “Sales” - the buyer paid for the goods in cash.
- Dt 50 “Cash” Kt 71 “Settlements with accountable persons” - the employee returned the balance of funds after completing an order or business trip.
- Dt 57 “Transfers on the way” Kt 50 “Cash desk” - cash was collected at the bank.
- Dt 70 “Settlements with personnel for wages” Kt 50 “Cash desk” - paid wages from the cash register.
- Dt 60 “Settlements with suppliers” Kt 50 “Cash desk” - paid for the supply of goods.
Keep cash records using the Kontur.Accounting web service. The system will help you prepare all the necessary documents, offer the correct entries and correctly account for expenses and income. All beginners can test Accounting for free for two weeks.
How to stop wasting up to 30% of your money on unnecessary expenses
Interesting numbers? This is how we lose our money without even realizing it! How to return them to your wallet? I’ll say right away that there is no secret secret or magic technique - you need to plan and maintain a budget.
Only the lazy do not know that you can become richer if you keep track of your income and expenses. But not everyone keeps a budget. In Russia, 60% of families do not keep records of family finances.
This is why most Russians cannot say at the end of the month where up to 30% of their personal money went!
