Recording a Business' Daily Intake of Revenues (Receipting)

The receipting function is critical to any business as it’s the first step in capturing in a comprehensive way revenues which will ultimately determine overall intake, profits and losses and whether the company survives over the long haul. 

The function itself can become arduous in larger companies as they seek to categorise revenues by location, business, product and currency. 

See this post for a guide to establishing a simple but robust receipting system.    

Objectives

 To ensure that: 

• Cash receipts are accurately recorded as received. 

• Cash receipts are deposited to bank accounts or vaults, the same day they are received. 

• Proper segregation of duties is maintained in the receipt, lodgement and recording of cash receipts. 

• GL entries and other internal records are accurately updated with cash receipts.

Policies

• To achieve the above objectives the following policies are to be adhered to:
  • Sequentially pre-numbered receipts should be completed by Operations Officer/Cashier or assigned custodian and the original sent to the client for every cash receipt.
  • Funds should be lodged to bank account or put away safely in vaults the same day they are received. 
  • Operations Officer/Cashier or assigned custodian should check batch receipts total with lodgement slip total to ensure that no discrepancies exist.
  • Batch receipts should be used by Operations Officer/Cashier or assigned custodian  to create journal voucher to update the underlying financial records.
  • Journal vouchers are checked and approved by OPS Head and input by Operations Officer/Cashier or assigned custodian.