Cash Management

A cash management, or cashbook system, is a record of all payments and receipts by cheque, credit card, Eftpos, cash or direct credit and keeps track of your compliance requirements.

It shows all income and sales, purchases and expenses relating to your business. These are entered and coded in a cashbook programme by you, or your Chartered Accountant.

It also allows you to efficiently manage your farm's day-to-day finances. You can manage invoices and bills, keep track of your compliance requirements and prepare for tax returns, as well as forecast cashflow going forward into the next business year.

Cashbook management system benefits

• Clarify your financial position - you’ll be able to monitor, understand and communicate your cash position.
• Show you how much you are spending relative to how much your farm is earning.
• Compare your actual financial results to your budgets and enable you to benchmark - you can use the information as a basis for new budgets.
• Help you identify your working capital (overdraft) needs.
• Provide you confidence and inform your decision-making.
• Help you meet record-keeping requirements.
• Allow you to respond more quickly to a change in your financial position.

Initial setup

Initial setup can take a while, but it's worth it, and it is important to get your setup right from the beginning. Make sure you fully understand how the coding will work and make sure it is consistent with the coding system used by your Chartered Accountant – accuracy in this area from the start will make tracking your spending and forecasting your budgets a lot easier.

Setup may require the help of your Chartered Accountant or other professionals depending upon the accounting software you choose.

Choosing cashbook software

Many people keep their cashbook electronically using an excel spreadsheet. However, there are a wide variety of accounting software programmes available.

The summary table below is designed to help with decisions on software options. You can click through to the providers in the table for more information.

We can't recommend a particular programme, so it is important you talk to your Chartered Accountant, rural banker, or farm management consultant to help you make the right choice to suit your needs. Ensure the system you choose will be compatible with your Chartered Accountant's.