How should you handle revenue records?

Deposit all cash receipts in a timely manner. If your business activity warrants it, you should deposit your receipts each day in order to reduce the risk of money being lost or stolen. If your business does not have a lot of cash receipts activity you should at least deposit your receipts every week regardless of the amount of cash on hand. All currency, checks and cash items received should be deposited intact without any deductions for expenses or advances.

Use your petty cash fund to pay expenses or advances that require currency. You should not keep large quantities of cash on your premises. If you need cash for a specific purpose, go to the the bank and cash a check for the exact amount of your petty cash expenses when it is needed.

Prepare good documentation (deposit slips). The area for descriptions on most deposit slips do not usually provide enough space to enter detailed information. Entries on your deposit slips should just be a summary entry such as the customer's name, bank account number, and/or check number. You should record the detailed information regarding the check or cash received on your cash receipts journal, recommends Robert C Olivieri, Jr CPA, who has been in the accounting profession since 1978. The majority of your deposits will be for customer payments on account and cash sales. It is recommended, you use a form for each type.

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