Cash sales: record them the day you get them
A customer pays $500 cash. A week later it's spent, and nobody remembers it came in. That's the most common hole in small-business records.
The habit
Record cash the moment you get it, before it goes in your pocket. In PeaceBooks, tap Income or Say it: “Got 500 cash from the Millers for fixing the porch.” It takes ten seconds, and your income is right.
What if the cash goes straight back out?
- Spent on the business? Record the expense too, with its receipt: paid in cash.
- Kept it for yourself? That's still income for the business. Record the sale, then record that you paid yourself (Paid myself). See Paying yourself.
- Put it in the bank? The deposit isn't new income; it's the same money moving. When your bank statement comes in, PeaceBooks matches the deposit to the cash you already recorded.
Why it matters
Missing income can cost you more than missing expenses: interest and penalties if the CRA finds it later. And if you're registered for GST/HST, cash sales carry tax like any other sale.
This is general information to help you keep good records, not tax or legal advice. Your accountant knows your situation; check with them before a big decision.
More tips
Which receipts to keep, and for how long
Six years, the details that matter, and how to keep them without a shoebox.
Read it
Do you need to charge GST/HST?
The $30,000 rule, registering early, and what changes once you're registered.
Read it
Paying yourself: what counts and what doesn't
Why money you take out often isn't an expense, for the self-employed and for companies.
Read it