Home› Accounting› Accounting Technical Support

Cash on Hand & Cash Management Account

snappyfishsnappyfish Member Posts: 55

When someone pays an invoice for work I choose paid "cash" in "cash management account"

Is this correct? If so what is "cash on hand" for?

edited June 1, 2018 in Accounting Technical Support

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @snappyfish.

    Those are two very different concepts. A Cash Management Account is an investment account from which you can buy stocks, or receive payments for sold stocks. It's a short-term brokerage account or. essentially, a very specialized bank account.

    Cash on Hand, however, represents physical money that your business owns. It makes up what's in your cash register, your safe, or your wallet.

  • snappyfishsnappyfish Member Posts: 55

    @Alexia said:
    Hi, @snappyfish.

    Those are two very different concepts. A Cash Management Account is an investment account from which you can buy stocks, or receive payments for sold stocks. It's a short-term brokerage account or. essentially, a very specialized bank account.

    Cash on Hand, however, represents physical money that your business owns. It makes up what's in your cash register, your safe, or your wallet.

    So in real terms does it matter? I've posted all my cash invoices payments to "cash management account"

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @snappyfish.

    It doesn't matter a whole lot, in the grand scheme of things, as long as you understand what's happening. Now, you might make your accountant raise an eyebrow and ask a question or two, so I would recommend moving things over. Realistically tho, it doesn't change anything.

Sign In or Register to comment.