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.