What is petty cash in QuickBooks?
Petty cash is a small sum of cash that can be used to pay for small expenditures. Here are several pointers on how to keep track of petty cash in QuickBooks.
What account type is petty cash in QuickBooks
When you send cash to an employee or use petty cash yourself, keep track of who, when, and what the money was used for with a slip of paper. It serves as a receipt for the money you withdraw. Take cash from petty cash as an expense in QuickBooks, with petty cash as the payment account. The sums on the slips of paper and the cash you have left should still add to the sum you deposited in the package. Reconciling your petty cash account daily is a brilliant idea. Since the transactions are in QuickBooks, you can then switch your paper slips to your long-term record keeping.
Now that you know what petty cash is, you must learn how you can set petty cash in your favourite QuickBooks Desktop or online software and do that, and you need to read and apply all the steps thoroughly given in our next segment.
How to setup petty cash in QuickBooks?
This section of the blog will show you how to set up a petty cash account. You can see money in this account when you shift money from your bank account to petty cash.
- Select Chart of Accounts from the Settings menu.
- Make a new selection.
- Choose Bank from the Account Form drop-down menu.
- Choose Cash on hand from the Detail Type drop-down menu.
- For the account name, form Petty Cash.
- When you move money from your checking account by writing a check or transferring funds, the opening balance is established. Enter the sum in the Balance area and select the date if you already have money to use for petty cash.
- Choose Save and Leave.
If you follow all these steps given above, you can easily setup the petty cash in QuickBooks Desktop software or the online version of QuickBooks. Now that you know how you can set up petty cash in the software, you must know the safest way to treat this petty cash, and our next section is all about that, so give it a good read.
What is the safest way to treat petty cash?
Now that you’ve built the account, it’s time to finance it. Here’s how to get started and stay organised with your petty cash.
Please note that you can assign one person to handle the petty cash box at your business and keep track of each withdrawal.
- Take some money out of your checking account and deposit it in a locked cash box.
- In QuickBooks Online, make a note of the transaction.
- Pick + New if you wrote a cashier’s check.
- Choose Cheque as your payment method.
- Assign the payee to Petty Cash.
- If petty cash isn’t on the list of payees,
- Choose +Add fresh.
- Pick + New if you took out cash without writing a receipt.
- Choose Transfer.
If you follow all these steps, you can easily use the petty cash in the safest way possible. If you are having any kind of trouble with setting it up, you can always get in touch with one of our QuickBooks Technicians by just tapping on to QuickBooks Desktop Error Support.
QuickBooks Desktop software comes with enormous functions and features and adds to that, and you can set petty cash in the software. This blog’s whole idea is to help you understand what is petty cash is, how can you set it up in your QuickBooks Desktop software. I hope that this blog proves to be a little helpful and was worth your time.