Keeping track of cash

The money in your wallet is, strictly speaking, an asset: an account with a balance, from which every purchase in cash should be written down. Nobody wants to write down every coffee, and ignoring cash altogether leaves a hole in your accounts. DovleEntry allows a middle way, because every account, income and expense included, can send money to any other.

A Cash expense account

Create an expense account called Cash, and treat it as the place where the money of your wallet goes:

• When you take money out of the bank, write a transaction from Checking to Cash: that money now counts as spent.
• When a purchase in cash is worth writing down, write it from Cash to its expense, like Clothes: the money moves from one expense to the other.

What is left in Cash at the end of a month is what you spent in cash without writing it down: the coffees, and the coins lost in the couch. Profit & Loss shows it as one more expense, next to the others.

The example document works this way: open it with File›Open Example Document to see it.