Record daily takings

  1. Overview
  2. Reconciling Transactions
  3. Reconcile payments
  4. Record daily takings

ⓘ This article is for small businesses who use Xero 

Overview

  • Enter a receive money transaction or a sales invoice to record your daily takings, such as cash and card payments.

  • Create a clearing account to maintain temporary payment transactions.

Record takings with a receive money transaction

Enter separate receive money transactions to record cash and card payments received into your bank account. If you have a petty cash bank account, select it to record cash sales used as petty cash. You can add receive money transactions from the dashboard or during reconciliation.

If you’re unsure, check with your accountant or bookkeeper for the best method that suits your organisation.

From the dashboard

  1. Click the add icon Plus image, then select Receive money.

  2. Select the bank account you want to record daily takings in, then click Next.

  3. Enter the details of the takings, then click Save.

Once you've recorded your daily takings, reconcile the statement line against the transaction you created.

During bank reconciliation

  1. In the Accounting menu, select Bank accounts.
  2. Click Reconcile [number] items for the bank account you want to create the transaction in.
  3. Locate the bank statement line you want to reconcile, then select the Create tab.
  4. Enter the details of the takings, then reconcile the bank statement line against the transaction you created.

 ⓘ  Tip

For recurring payments, you can create a bank rule. During bank reconciliation, Xero suggests a receive money transaction with the details you specify when you set up the rule.

 

Record takings with a sales invoice

Add a sales invoice to record the types of payments you receive, such as cash sales or credit card payments. Record separate payments on the invoices, then reconcile them.

  1. Click the add icon Plus image, then select Invoice.

  2. Enter the details of the takings. If you receive both cash and card payments, add a line for each payment type, coded to the relevant revenue account.

  3. Click Approve & email or click the arrow, then select Approve to finalise the invoice.

  4. Either:

    • For new invoicing, click Add payment, then complete the payment fields. Then, Click Add.

    • For classic invoicing, fill in the payment fields, then click Add payment.

You can record part payments for each payment transactiontype as required.

Once you've recorded your daily takings, reconcile the statement line against the transaction you created.

Track daily takings through clearing accounts

If you record your daily takings with a sales invoice, use clearing accounts to keep track of the types of payments you receive.

On each daily takings invoice, record payments coded to the clearing accounts, then reconcile the statement lines for the deposits to the same clearing accounts. These payments offset each other, leaving a nil balance in the clearing account.

Set up a clearing account

In your chart of accounts, create an asset type account for each type of payment you receive and enable payments to this. For example, create a:

  • Cash sales clearing account to record your cash sales

  • Credit card clearing account to record credit card payments

Record and reconcile the payment

  1. Click the add icon Plus image, then select Invoice.

  2. Enter the details of the takings. If you receive both cash and card payments, add a line for each payment type, coded to the relevant revenue account.

  3. Apply payments to the invoice. In the Account field, select the relevant clearing account.

  4. When the bank statement lines for the daily takings appear in Xero, reconcile them by creating receive money transactions coded to the relevant clearing accounts.

    Create receive money transactions coded to the clearing account

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