Cash

CASH is a current asset account consisting of currency, coins and available funds on deposit at the bank. It also includes undeposited checks received from customers. The amounts must be free from any contractual restrictions that limit their use in satisfying debts. (Restricted cash should be recorded in a different account.)

Other cash items may be:

• money orders
• certified checks
• cashier's checks
• personal checks
• bank drafts
• savings accounts
• petty cash funds
• change funds
• un–utilized portion of an overdraft facility or line of credit

Postdated checks and I.O.U.s are receivables, not cash. Bank overdrafts belong in the current liabilities section and are usually added to Accounts Payable.

Sometimes the first line on the balance sheet will read: Cash And Cash Equivalents. That means the value of cash plus any other assets which can be converted to cash immediately.

The best way to manage your cash levels is with a cash flow analysis tool. This cash flow template is this kind of a tool. Lay out your cash inflows and outflows in an organized fashion and monitor your cash balances from day to day or week to week. No need to fret or lose sleep at night. Managing your cash is not hard, but it does take some organization and some time staying on top of it regularly. Let this cash flow template do the math for you and help you stay in control of your cash.

1, 3 and 5 year balance sheet templates for three different legal entities: LLC, corporation and a sole proprietor.

Learn how to analyze a balance sheet in terms of company's liquidity and solvency using financial ratios such as the current ratio, quick (or acid) ratio, debt to asset ratio and debt to equity ratio.