Procedure for Cash Books
The NGO must keep a cash book to document all cash transactions every day in order to guarantee precise financial tracking and encourage openness. All cash inflows and outflows, including grants, gifts, petty cash disbursements, and reimbursements, must be reflected in the cash book, which the designated financial officer is required to update in real-time. Valid supporting paperwork, such as vouchers, receipts, or acknowledgment forms, should be included with every entry.
The cash book must be balanced at the end of each working day, and the actual amount of cash on hand must equal the closing balance noted in the book. The financial manager should be notified right once of any disparities so they can be examined and fixed. To guarantee consistency across all records, monthly periodic reconciliations between the cash book and bank statements must be carried out.
At the conclusion of each month, the finance manager or another designated authority must evaluate and approve the cash book. After then, it will be safely preserved as a part of the company’s financial documents and made accessible to stakeholders upon request or during audits. The purpose of this process is to maintain financial integrity and adherence to donor criteria as well as internal controls.
Author: Mohamed Yasin
