Money does not simply arrive. It lands in the drawer or in one of your accounts, and knowing which is the difference between a balance and a guess.
A business with one bank account and a cash drawer already has two balances to keep straight, and most have more — a current account, a UPI-linked one, cash at the counter, cash at home. Recorded as a single lump, none of them can be checked against a statement.
Keeping them as separate accounts means every receipt and payment says where it moved, so the app’s figure for an account can be compared with the bank’s, and the drawer can be counted against what it should hold.
Cash in hand, and each bank account you use.
Say where the money landed.
Expenses and supplier payments leave from an account.
Your figure against theirs, account by account.
The money side of the business: what has been billed, what has been collected, what is still owed, and what the tax on all of it comes to. Party ledgers sit at the centre — every bill and every payment lands on somebody’s khata, and the balance there is the number you act on.
Most of this area runs on its own once bills are being raised: ledgers update as you bill, reminders go out on their due dates, and the GST reports are built from what is already recorded.
The money moving in and out of them.
Yes, each as an account of its own, alongside cash in hand.
Because a balance you cannot compare with a bank statement is not a balance you can rely on.
Cash in hand is kept as its own account, which is what the shift count is measured against.
One lump sum cannot be checked against anything. Accounts can.
