A Cash Book is a financial journal used to record all cash and bank transactions of a business on a day-to-day basis. In the Indian accounting context, it serves as both a journal and a ledger—meaning transactions are first recorded here and do not need to be entered again in the cash or bank ledger separately.
Maintaining a Cash Book is especially important for small businesses and startups, as it helps track the inflow and outflow of cash in real time. It ensures that all cash-related transactions—such as sales receipts, payments to vendors, withdrawals, and deposits—are documented accurately. Depending on the nature and volume of transactions, businesses may use different types of cash books like a single column (only cash), double column (cash and bank), or triple column (cash, bank, and discount).
For Indian businesses, maintaining a Cash Book is not just good financial practice but also helpful during GST filings, tax assessments, and audits, as it provides verifiable evidence of all cash and bank activities. Since many compliance processes under Indian tax laws require transparency in financial records, a well-maintained Cash Book can simplify documentation and reduce errors during statutory reporting.
Whether you're registering a new business, managing a growing enterprise, or preparing for annual filings, having an organized Cash Book helps improve financial control and builds trust with investors, auditors, and tax authorities.