As Coconut connects to your bank account to capture your incoming and outgoing transactions, cash payments that are done outside of your bank will not be appear in Coconut. You still need to record those cash expenses to get a proper picture of all of your income and expenses for HMRC.

There are two ways you can record cash expenses in Coconut.

  1. Manual transaction (recommended)

  2. Recategorise a cash withdrawal as an expense

Manual transaction

The recommended way to record cash expenses within Coconut is manual transaction Using a manual transaction allows you to specify:

  • The amount paid

  • The date the transaction occurred

  • The category the cash expense belongs to

  • Any notes to help identify the transaction

Simply head to your Transactions tab, select the "+" symbol and let the app guide you through each screen. Once you have created your manual transaction, this will appear in your transaction list and you can amend it if you need to.

We also recommend to receipts to your cash transactions so that you are able to provide evidence for the purchase when needed.

Recategorise a cash withdrawal as an expense

If you made a cash withdrawal for your purchase, you'll notice this will appear in your banking transactions with the Cash Withdrawal category. If the amount withdrawn is the exact amount used for the purchase, you can re-categorise this transaction as an expense. If the amount withdrawn is not the same amount as the cash expense, you can split the transaction and categorise only part of this cash withdrawal as an expense.

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