NZ's Most Popular Keep-It-Simple Accounting Software

The Graph only shows items that contribute to your profit.

In the Cashbook:-

  • Income categories are for your sales / income.
  • Expense categories are for your costs / expenses.
  • Balance Sheet categories are those items where although there is a transaction of some nature, it does not directly affect your cash profit.

Examples of Balance Sheet categories are:-

  • Transfer – If you transfer money from one bank account to another, that does not affect your cash profit.
  • Assets – If you purchase an asset, the asset will affect your bank balance, but not your cash profit.  An allowance for depreciation will be made by your accountant at the end of the year.
  • Drawings – If you take drawings (salary) out of the company, you are taking some of the profit out of the company, but you are not affecting the profit you make.
  • Tax Paid to the Tax Department – You will have been collecting tax on behalf of your country.  The tax payments you make to them are therefore not an expense.
  • Loans – Receiving a loan helps your cash flow but you don’t want to include it with your sales.