Last Updated on November 10, 2020 by Editorial Staff
We eagerly welcome our all readers to be a part of Accountwizy, we know, you are here only because of the ‘QuickBooks petty cash’. Have patience and stay with us, here in this blog, we are going to provide some information regarding petty cash in QuickBooks, and the setup and use procedure of QuickBooks petty cash.
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Before starting the blog, here is a question for all new QuickBooks users that, ‘Do you know ‘What is petty cash?’. If your answer is ‘Yes’, it must be a good thing, but if your answer is ‘No’ then, don’t worry here we have a little overview of petty cash. In a simple sentence, it is a small number of funds kept by an organization for expenditure for small items.
Let’s start the blog:
Petty cash in QuickBooks is used to pay quickly for business expenses. In the United States of America, approximately 90 percent of accountants are using Intuit QuickBooks Petty account for payments to their business expenses. Because it is more convenient to use and saves lots of time to buy anything for your Business Expences. If you want to take advantage of a petty cash account then you just need to Setup your petty cash account in your QuickBooks Online accounting software.
The best things for you are using a QuickBooks Petty cash account, you don’t need to pay for small purchases with credit cards or checks and also easily keep a paper record of your expenses and maintain your accounts.
QuickBooks Petty Cash is already a common form of the financial accounting system and is a pre-specified amount that is taken out of the budget. It is spent according to need and is rebuilt after a set period or when it runs. But without a Petty account, it is no possible to keep a record of your daily basis expenses.
Benefits of QuickBooks Petty Cash Account
QuickBooks petty cash uses quickly buy various small expenses such as stamps, snacks, and food for guests or meetings, make the changes for the customer and so on. And petty cash account in QuickBooks availability proves to be more convenient and helpful at any time of purchase.
QuickBooks petty cash account is the best part of QB online for petty cash. If you are a new user of QuickBooks accounting software and want to use a petty account for petty cash in QuickBooks.
So here given all procedures to you for manage, set up petty cash in QuickBooks. If you also want to know other advantages of petty cash read more, please.
Advantage of petty cash in QuickBooks
If you want to use petty cash in QuickBooks, then you can get more advantages of this such as:
- Bank type account: Petty cash is cash on hand as the wallet of the owner.
- Secured box and minimize your risk: However, you keep some money this can be risky to save for your petty expenses. It minimizes your risk to keep cash in your hand, a petty account is secured locked box.
- Manage account cash sheet: All transactions or expenses record and represent this in your balance sheet.
- Keep spending in a manner: Save receipts for all expenditures to keep your petty cash in manner.
- Long term transaction record in QuickBooks: Reconcile your petty cash in QuickBooks petty account regularly then there is no need to keep lots of records on the paper. Because you can keep long term transaction records in QuickBooks.
- Easy to use: Petty cash is easy to use and a more convenient supply of cash whenever you can use to pay small expenses.
- To keep record payment expense transaction: You can keep all payment transactions from the fund as a type of transaction.
By using a petty account for petty cash in QuickBooks, you can easily track your all expenses and accounting data. let’s know – how to set up a petty cash account in QuickBooks?
How to set up a petty cash account in QuickBooks?
As you know, petty cash is a small amount of money and if you are a user of QuickBooks then it is the best offer for you. Where you track your business expenses in QuickBooks by making a petty cash account.
You can set up your account, transact, record, petty expenses and accounting for your business. This software is one of the best cash day books used in bookkeeping.
Expenses on simple things could be office supplies, small repairs, paper, cleaning, fixing cabinets, printer cartridges and so on cash purchases are made by the owner or managers. If you also want to keep a small amount of cash for your store or business expenses?. So for this, you need to track & record petty cash expenses in order, you should use the QuickBooks petty account.
For any business or small store office expenses, pick a dollar amount in the petty account to cover expenses of a month and more. To set up petty cash in QuickBooks follow below steps:
- Click on Setting then a select Chart of account
- After it, click on New
- In the Account select Bank
- Then select Cash on Hand from Detail Type
- After that, you have to enter Petty cash for your account name
- While moving money from the checking account/transfer fund the opening balance will be created.
- At last, you can select Save and close.
Note:- In this case if you have money to use petty cash than you have to enter the amount in the Balance field and select as a Date.
How to put in And take out cash
After creating a petty account for petty cash in QuickBooks, are you thinking about how to manage petty cash?. So first, you have to put up some money to take out cash for your quick expenses need. By using given steps you can easily put in and take out cash.
To Put Cash In Cash Box
- First of all, withdraw some cash from the checking amount.
- Then put the cash in a locked cash box.
- After that, record transactions in QuickBooks Online.
- Go for the process, if you wrote a check for cash:
- Click on the ‘+ New’ option.
- And then, go for the ‘Check’ option.
- Then select the ‘Paty Cash’ option as a payee.
- And then on the ‘+Add New’ option if the petty cash is not listed as payees.
- Go for the process, if you withdraw the cash without writing a check.:
- Simple, click on the ‘+New’ option, and then on the ‘Transfer’ option.
To Take Out Cash
- While giving petty cash to your employee to buying simple needle things or use of yourself, record it.
- Record it, with a slip of paper about all information who, when and for what money used to track. This is the best account to track the cash that you take out from petty cash in QuickBooks.
At any time you use petty cash to buy small expenses with petty cash, so you should take the record in QuickBooks. Because this will help you to track your petty account on a daily basis. The best thing, you are indirectly helping to save pepper by keeping long term transactions in QuickBooks.
Simple Steps To Add Petty Cash Receipt In QuickBooks
By using a petty Account for petty cash in QB Simple way to track your expenses and connect purchases to the appropriate accounts.
As you know, paying for small purchases with debit or credit cards is not always feasible. Whenever you would buy any small thing by using cash from your petty cash or cash drawer, you can easily record all these expenses in QB. just you have to follow these given steps
Note: If your petty account is not created then follow Step 1 and 2.
- Firstly you have to open the List menu and select Chart of Account
- Then click on Account and select New option
- After that, you should click on Bank and then Continue
- In the Account field, you have to enter the Name as petty cash/cash drawer
- Then live this field with Zero “0” for Opening balance then you should select the current Date.
- After that, you have to save and close this.
If your petty account is created then follow only Step 2 otherwise both.
- First, you need to go List bar
- Second open chart of account to receipt entry
- Then you should choose a created petty account
- For tracking information, you can fill a payee(it’s optional)
- After that, you should fill receipt amount in the column of the Payment,
- Then press Tab and select Account
- After that select expense account
- Then Click Split, if you want to split the petty amount between account
- At last, you have to select a Record.
For Example, You wrote a check #4 on Feb 5 for Cash to petty cash fund then you can follow the below steps.
Check Receipt Entry in QuickBooks-
- Open List menu and select Chart of Account
- Click on Create ‘+’ then click on Check
- After it, fill cash in Add cash and select 5 Feb
- Then choose Bank and select expense name as you spent in Account field
- Then fill amount like$500
- At last Save and close.
- Now, you see check#4 saved. If you want to confirm all record and balance
- Go to Report then trial balance, entry, and the total balance will appear in this sheet.
By using this procedure you can manage petty cash records and see the total balance. If you don’t deposit your cash in the account then you can use customer’s received cash into a petty account for petty cash in QuickBooks for your business expenses.
Here we provided information about Patty Cash like what is Petty cash in QuickBooks and how to set up Petty Cash Account for a business or organization and also see its benefits. We hope after reading this post you will get everything about petty cash. If you want to know more information about petty cash or QuickBooks, you can join the Intuit Education program or can get our ProAdvisor Support for instant help.