Managing your business finances doesn’t have to be complicated. Angela Boxwell’s free Excel cash book template has been downloaded over 35,000 times by sole traders, landlords, freelancers, charities, and small businesses across the UK, and it’s easy to see why. It records everything that comes in and goes out of your bank account, keeps a running balance, and produces a simple profit-and-loss summary, all without requiring any accounting knowledge. Free to download, no sign-up needed, and ready to use straight away.
The template works from your business bank account transactions. If you don’t have a separate business account, you can use your personal account and post only the business-related transactions. Note that it is not suitable for VAT-registered businesses; if you are VAT-registered, you will need MTD-compatible accounting software for your VAT records and returns.
Many people ask about free bookkeeping software, and while free options do exist, most come with limitations or are simply more complicated than a small business needs. For sole traders, landlords, and small businesses that need a clear record of money in and out, a straightforward Excel cash book is often the most practical solution, which is exactly why Angela created this template.
What is a Cash Book?
The first thing we must consider is what a cash book is. A cash book records all the money coming into and going out of your business, also known as income and expenditure, from either the bank or cash. It is the simplest form of bookkeeping and a good way to record cash transactions.
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There are several types of cash books, ranging from a single-column cash book to a triple-column cash book. Our template is a single-column cash book that allows you to record all the figures and analysis for different account codes.
The totals page shows the income and expenditure for the whole year and forms the basis of the profit and loss account (income statement).
Alternatives to using a Free Cash Book Template
As your business grows, you may find that a cash book is insufficient to keep the business records. If you keep stock, give credit to customers or have assets, accounting software would be better to set up from the start.
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Below is a comparison of Excel vs accounting software.
| Feature | Excel Cash Book Template | Accounting Software |
|---|---|---|
| Cost | Free | Monthly/annual subscription |
| Ease of Use | Simple for small volumes of data | Automates invoicing, bank feeds, and reports |
| Automation | Manual Entry | Automates invoicing, bank feeds, reports |
| Accuracy | Dependent on correct formulas | Reduces errors with built-in checks |
| Reports | Limited | Real-time reports on profit, cash flow |
| Tax Compliance | Manual calculations | Integrates with HMRC MTD |
| Accessibilty | On one device (or Google Sheets) | Cloud-based, access anywhere |
| Scalability | Best for very small businesses | Grows with your business needs |
| Security | Relies on your own backups | Cloud storage with secure encryption |
| Best For | self-employed, charities | Growing businesses for automation |
Cash Book Template options
We have created three versions of the cash book template. The first version includes three income sales categories, eight expense purchase categories that you can name, and forty transaction lines per month. It is enough for most accounts and ideal if you are a small sole trader or charity. It is suitable for both self-employed individuals and limited companies.
Our extended version is now absolutely free to help your business even more. Each month has a separate worksheet that shows the month’s totals. There is also a totals page which provides the profit and loss by month and a total for the whole year. It helps provide figures for either self-assessment tax or for an accountant for the year-end.
The extended version is for businesses that want to record more transactions or details, with five sales categories, thirteen purchase categories, and 95 transaction lines.
If you’re unsure which one is right for you, refer to the table below. You can also download the standard version first and see if it works for you.
| Cash Book | Standard Version | Extended Version |
|---|---|---|
| Income Codes | 3 | 5 |
| Expenses Codes | 8 | 13 |
| Transaction lines | 40 | 95 |
| Charge | Free | Free |
Our final cash book is designed for self-employed individuals and runs from the tax year, making it easier to report the figures for self-assessment.
⚠️ Warning: If you use this Excel cash book and fall within the Making Tax Digital for Income Tax thresholds, you will need to digitally link your spreadsheet to MTD-compatible bridging software for your quarterly submissions to HMRC. Free options such as My Tax Digital support Excel and CSV files and are HMRC-recognised.
Making Tax Digital and your cash book
Making Tax Digital for Income Tax is being introduced in phases for sole traders and landlords: from April 2026 for those with a qualifying gross income over £50,000, from April 2027 for those with a qualifying gross income over £30,000, and from April 2028 for those with a qualifying gross income over £20,000. Qualifying income means gross income before expenses from self-employment and property rental — income from employment, dividends, or pensions does not count.
When MTD applies to you, you must keep digital records, submit quarterly updates to HMRC, and submit a Final Declaration after the year-end, which replaces the traditional Self Assessment return. You can continue using this Excel cash book for your record-keeping. Still, you will need to link it digitally to MTD-compatible bridging software, such as My Tax Digital, for your quarterly submissions. Excel alone is not sufficient for submission.
If your qualifying income is below £20,000, MTD for Income Tax does not apply to you for now, and you can continue using this template and filing Self Assessment as normal.
Free Excel Cash Book Template Example
We have produced a free Excel cash book template example based on a small computer firm so that you can see it in use for yourself, along with instructions. The page shows how to set up the template and walks you through the bank statement used to generate the figures.
The link is available at the bottom of this page.
Cash Book Instructions
Although it is simple to use, you need to follow the setup instructions to ensure your bookkeeping records are ready to go. A complete example with instructions is available.
Using the cash book example will allow you to post some cash transactions for both cash receipts and cash payments. The totals page shows the cash book balance. It will allow you to review how it works and see if it is suitable for your small business.
If you need any help or advice, please email me.
Features of the Excel Cash Book Template
- Free to download and use as many times as you want.
- Easy-to-use cash book format.
- 1 worksheet for each month plus a total page for the whole year.
- The template shows profit and loss month by month and in total for the year.
- If you have more than 1 bank account, use a separate Excel template for each account.
- You can name income and expenditure codes; some examples are provided in the instructions, making it easier for different businesses.
- A drop-down list of account codes to make posting easier.
- Running total of your bank balance to ensure that your figures are correct.
- Each worksheet prints on a single page.
- Suitable for small businesses or personal bank accounts.
- Easy to input all the information.
- Full instructions are provided, along with an example.
If drop-down lists are not working, you may be using an older version of Excel — upgrading to a current version or switching to Google Sheets should resolve it.
Excel Cash Book Format
When you use our free Excel cash book template, you’re working with a clean, easy-to-follow format designed to record all money coming in and going out of your business. Here’s how it’s structured and how you’ll use it:
Layout & Key Sections
- A monthly worksheet for each month, plus one “Totals” sheet for the year.
- A setup page for opening balances, business name and start month
- A worksheet to set categories for income and expenses
Then the main table where each transaction gets logged:
- Date of the transaction
- A short description or reference
- Amount
- category
- A running balance column to show what the cash or bank balance is after each transaction
Bank Reconciliation
At the end of each month, it is worth checking that your cash book matches your bank statement, which is called a bank reconciliation. It confirms that every transaction on your statement has been recorded correctly in your cash book and helps you spot errors before they become a problem at year’s end.
How to reconcile your cash book:
- Compare the closing balance in your cash book against your bank statement closing balance for the same date
- If the balances match, your records are complete and correct for that month
- If there is a difference, work through each transaction line by line to find any mistakes. You may have missed a transaction, duplicated an entry, or transposed a figure.
📌 Example: Your cash book shows a closing balance of £1,250.00 but your bank statement shows £1,175.00. A £75.00 difference suggests a transaction has either been missed from the cash book or entered at the wrong amount. Check your statement line by line until you find it.
Separate Business Bank Account
If you are using your personal account for business transactions, it is worth opening a business bank account. Here are the reasons why:
- Keeps personal and business finances separate
- Easier to see how much money the business has
- Quicker to reconcile statements
- You will not miss any business expenses
- A legal requirement if you are a limited company
Cash Book Ledger
In accounting, a ledger is simply a record of financial transactions. The cash book acts as the main ledger for most small businesses — recording all money going in and out of your bank account in one place and producing a simple profit-and-loss summary at year’s end.
Larger businesses also use a sales ledger for customer invoices and a purchases ledger for supplier bills. For most sole traders and small businesses, however, the cash book template is sufficient. If your business grows and you need to track credit accounts, supplier invoices, or stock, it may be time to consider accounting software.
Free Excel Cash Book Template – Licence Agreement
By downloading the Excel Cash Book template, you agree to our licence agreement, allowing you to use the templates for your own personal or business use only. You may not share, distribute, or resell the templates to anyone else in any way.
Please note that you cannot add extra rows or categories to the spreadsheet. If you require more categories, please follow the link below to the extended version.
Is the Excel cash book template really free?
Yes, completely free. There is no sign-up required and no trial period. Download the template, save it to your computer, and use it as many times as you need. You can customise the account code names to suit your business.
Is there a version for the self-employed tax year (April to April)?
Yes. There is a self-employed version of the cash book that runs from 6 April to 5 April, matching the UK tax year. This is ideal for sole traders who need to produce figures for their Self Assessment tax return.
Can I use the cash book template if I am VAT registered?
The standard cash book template does not include VAT tracking. If your business is VAT-registered, you will need MTD-compatible accounting software, such as Xero, QuickBooks, or Sage, to keep digital VAT records and submit your VAT return to HMRC.
What is the difference between the standard and extended versions?
The standard version has three income categories, eight expense categories, and 40 transaction lines per month. The extended version has five income categories, thirteen expense categories, and 95 transaction lines per month. Both are free to download.
Return from the Free Excel Cash Book Template to the Business Accounting Basics page.
Last updated: April 2026
