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how to process cash payment?

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Is processing of cash payments any differnt from electronic ones(through bank transfer)?

The normal process for a company to receive the money for the service is to issue an invoice with bank details in it, then the customer pays to the company's bank account. However once the company issued an invoice, but the customer paid in cash, though the amount was relatively small, something under 200 pounds. The co-director wrote on clients copy of the invoice that the company has received the payment and credited that amount to company's bank account later that day with invoice number as a reference. Will he need to do anything extra or other than that?

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By Duggimon
21st Mar 2018 10:52

What are you actually asking? How to record it in the books/software? Or just if there's some other legal obligation for keeping evidence of the transaction?

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By UshatPoev
21st Mar 2018 11:06

Both questions are interesting to know with a priority of the first one.

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By carynw
21st Mar 2018 12:27

If the moneys been deposited in the actual bank account then it can be treated like an electronic payment for posting in your books/software

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By UshatPoev
21st Mar 2018 12:33

Thanks. The co-director deposited the money to company's bank account the day he received that payment. That means that no extra measures should have taken place and it's possible to treat it like every other payment that the company receives directly via bank transfer from its clients?

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By andy.partridge
21st Mar 2018 15:03

Well, the payment wasn't made direct to the bank by the customer, it was paid to the director.

The end result is the same, but the bank statement will show that cash was paid into the bank and you could reference that in your accounting entry.

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