AccountingBankingCannabisFarming

Accounting considerations for handling cash

Some of my primary client groups depend heavily on cash transactions. The seafood and farming industries in rural southwest New Jersey, for example, are almost entirely run on cash. There isn’t a bank branch in our rural township; the closest bank is a 20-30 minute drive each way. Also, parts of our are do not have internet service, so electronic transactions are impossible. Also, the marijuana industry operates primarily on cash; banking is not widely available to these businesses. As a practical matter, these businesses operate primarily on cash transactions.

Obviously the accounting requirements are different for cash than for electronic or check transactions. The physical controls, transportation, storage and physical safety issues are major considerations.

Occasionally we see an accounting blog post that does such a great job that it makes more sense to point to it rather than attempt to discuss the topic myself. This is the case with cash accounting; Charles Hall CPA does such a good job that it makes sense to simply point to his recent blog post: https://cpahalltalk.com/auditing-cash/

Mr. Hall’s blog post is derived from his new book on auditing. I’ve purchased a copy and look forward to reading it next month (after I complete a currently running professional course).

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