Money

Often people think of money as cash in the form of coins and notes.

In bookkeeping and accounting, money refers to:

  • Coins and notes
  • Money in the bank
  • Receivables, funds owed to the business
  • Payables, funds owed by the business

Generally anything of value will carry a monetary value.

Cash is considered to be a current asset and a tangible asset which can be easily used to purchase other assets.

The word money is also sometimes associated with currency.

Money is vital to a business, ensuring it is sustainable.

Managing money effectively will ensure a healthy cash flow, meaning more money coming in than going out of the business.

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