To pay for modest purchases and other expenses, most businesses employ petty cash accounts. You must nevertheless record the money allotted to petty cash in your company accounts even though individual petty cash transactions are typically too insignificant to be included in the main balance sheet of the company. Setting up a QuickBooks petty cash account allows you to keep track of and record petty cash transactions. This blog help you learn how to Setup and Use Petty Cash Receipts in QuickBooks. Furthermore, we’ll demonstrate to you how to produce, manage, and enter petty cash receipts into QuickBooks.
Understand Petty Cash and Where Can be Used for
Petty cash is primarily utilised for all little and large business needs, including systems, office supplies, stamps, postage, stationery, daily wages, transportation, and more. Every day, these expenses arise, and they must be paid for right now. Every little expense was covered by the little cash available.
Petty cash is available for these uses in all businesses. QuickBooks still allows you to record purchases made with petty cash or cash from your cash drawer. If your transactions are properly entered into QuickBooks, you may track your cash expenses and link a number of purchases to the appropriate accounts. Just open a petty cash account is all that is required. The below section will discuss about the same. Make sure to read out very carefully.
Setp by Step Instructions to Setup Petty Cash Account in QuickBooks
It has been explained here how to create this account. You may locate Lists by entering the QuickBooks software. The Chart of Accounts is accessible by clicking on it. Your list of accounts will be displayed. There will be a link for Account as you go through the list. Choose Bank after opening it. The opening balance and account name must both be entered before continuing.
For the setting of your Setup and Use Petty Cash Receipts in QuickBooks Account, you will need the final set of instructions.
- Initially, launch your “QuickBooks” and start your computer
- Open “Lists” on the software’s main menu
- Choose “Chart of Accounts” by tapping it
- As soon as “Chart of Accounts” is opened, a list of the accounts will show
- To get to the bottom of the list, scroll down your menu
- Click on the “Account” link
- Choose “Bank” from the contextual menu
- After that, click on the “Continue” button
- Give the newly created petty cash account a suitable name in the “Account Name” column
- Choose “Opening Balance” from the menu
- The opening balance for the new petty cash account should be entered there
- Once done with that, press the “As of” button
- A drop-down menu will show up
- The list contains a number of dates and then choose the current day
- You can select “Save” to keep the account’s details on file
- When you have finished, click “Close” to log out of your account.
Steps to Create Petty Cash Account in QuickBooks
You must go to the COA or Chart of Accounts option in the QuickBooks software to create a petty cash account. Account can be chosen using COA. Next, choose New. You must choose this option in order to create a petty cash account.
The steps that must be taken right away are listed below:-
- In the beginning, open your QuickBooks software
- Next, you can access the “Chart of Accounts”
- Choose “Account” from the drop-down menu in the bottom left corner
- After that, choose the “New” option
- Make sure the new type of the account is set to “Bank” within “Account”
- Once done with that, give your account name as “Petty Cash”
- Enter “0” as the beginning account’s balance
- In the end, choose the “Save & Close” option from the menu.
Steps to Enter Petty Cash Receipts in QuickBooks
Examine the procedure described here for inputting petty cash receipts in QuickBooks:
- Choose “QuickBooks Settings” from the menu
- Go to the “Chart of Accounts” section
- Next, you’re required to select the “New” button
- Click on the “Bank” at this time
- Moving forward, choose “Cash on Hand”
- This option is available in the drop-down menu
- The name of the account needs to be “Petty Cash”
- Find the “Balance Field” where it is. Enter the amount of money you want to designate as petty cash
- The option to “Save and Close” can be found
- To complete the process, click on the Finish button.
After that, you can choose to instantly publish transactions into your petty cash account each time you make one in the QuickBooks software. As a result, you won’t need to write checks for your transactions.
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Steps to Manage Petty Cash in QuickBooks
You can add funds to your QuickBooks petty cash account once it has been created. You can take money out of your account and put it in a cash box to deposit it into your account. Then, if you want to maintain a record of the transaction you made, you can select New. In the event that you have written a check for cash, we advise that you choose the Cheque option. If you didn’t write a check, you can also choose Transfer.
- You can take out some money using your current account
- Put the money in a box that is locked
- Click “New” to begin entering this transaction into QuickBooks
- Choose “Cheque” if a check was made out for money
- You must select “Petty Cash” in place of “Payee”
- If you are unable to locate “Petty Cash” on the list of payees, click “Add New“.
You can record it on paper together with the relevant information, such as the purpose of taking it out, if you are taking money out to give to your employee or for any other reason.
It’s usually a good idea to Setup and Use Petty Cash Receipts in QuickBooks. You might occasionally use petty cash in QuickBooks to make purchases. After a petty cash account is established, your costs will then be noted or included in the statement. It will be helpful to match the expenses and income with your account if you keep track of the petty cash. In case, you still need further assistance, you can get in touch LIVE CHAT with QuickBooks Helpdesk Team.
Frequently Asked Questions
How Do I Record Petty Cash on QuickBooks?
The below steps help you to record a petty cash on QuickBooks:-
- Initially, go to the “Chart of Accounts” option
- Choose “Financial Balance” to access the petty cash menu
- At this point, the “Record Register” needs to be opened
- Next, “Transaction” must be added as a new section
- Enter the amount of the cash outlay in the payment section
- Choose “Business Ledger” from the drop-down menu
- In case it is necessary, you can select the split capacity
- Provide the cost total for each record as well
- To finish, select the “Save” button from the menu.
Are Receipts Required for Petty Cash in QuickBooks?
Petty cash should not be considered a big expense for your company. You can mandate that staff members keep a running petty cash log entry with details of each transaction and receipt. The date, the amount, and the items purchased with the petty cash should all be included in each log entry in the petty cash book.
What do you Understand with “Take Cash Out” in QuickBooks Petty Cash?
To keep track of who, when, and what was purchased with the money, keep a record of each time you give an employee cash or use petty cash yourself. To track the money you take out, use this as a receipt of sorts. Use the petty cash account as the payment QuickBooks account when entering a transaction in QuickBooks that involves taking money from the petty cash. The sum total of the sums on the slips of paper and the cash you have left should at all times equal the sum you put in the box.