It is not possible to have negative Cash on Hand

Include

Don’t include

Petty cash and money in bank accounts

Assets

Calculation

∑of money immediately available

__________________________

= Cash on Hand

OR:

CoH at beginning of period

– Expenses

+ Receipts

_________________________

= Cash on Hand at end of period

At the beginning of February a company has 52.000 € Cash on Hand. In February they have expenses of 12.000 € and receipts of 8.000 €. Their Cash on Hand at the end of the month is therefore calculated as follows:

+52.000€

-12.000€

+8.000€

________

=48.000€

Alias

Cash Balance/Cash/Liquid Assets

Abbreviation

COH

Unit

Currency (Euro/Dollar/YEN/…)

Q&A

Q: Can I just add the months Revenue and deduct the months Total Cost to get my new Cash on Hand?
A: Usually not, as the sale and the actual cash flow do not necessarily occur in the same month.

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