Easy-to-follow video tutorials help you learn software, creative, and business skills.Become a member
Petty cash is company cash you use for the occasional purchase you make with cold hard cash. Some companies keep money in a drawer in the office. When employees need cash for a purchase, the person in charge of petty cash doles it out. If you are a company of one person, you might carry some company cash around in your wallet. Either way, you have to record transactions for putting money into the petty cash kitty and then other transactions for what you spend petty cash on. If you don't have an account set up for petty cash, create a bank account in QuickBooks for it.
You've learned how to create accounts in the chapter Setting Up a Chart of Accounts. That way it appears at the top of your Chart of Accounts with other asset accounts, like the Petty Cash account here. When you put money into your petty cash account, you usually take money out of your checking account. Because of that, a transfer is the easiest way to record the transaction. On the Banking menu, choose Transfer Funds. In the Transfer Funds Between Accounts window, choose the date for the transfer.
In the Transfer Funds From list, choose your checking account. In the Transfer Funds To list, choose Petty Cash. Then in the Transfer Amount box, type the amount that you're transferring to Petty Cash. Click Save & Close to save the transfer and close the dialog box. When you or someone else spends money from the petty cash account, you have to record the expense transaction. Recording these transactions in the petty account register is the easiest way to do this.
In the Chart of Accounts window, double- click Petty Cash to open the register window. QuickBooks automatically selects the first blank transaction in the register. If the Date box isn't set to the date you want for the transaction, click the Calendar icon and choose the date. You can skip the Number cell. QuickBooks increments the number each time you record a transaction. So you don't have to do anything. You can choose the payee if you want. But for Petty Cash transactions you can also leave the payee blank.
Then you can type text in the Memo cell to describe what you bought. Click the Payment cell and type the amount of the purchase. In the Account cell, choose the account for the purchase. If the petty cash purchase covers more than one type of expense, you can click Splits to fill in each account and amount. When you're done entering other accounts and amounts, click Close. Then click Record to record the transaction.
The balance in the petty cash account should match what you have in your wallet or the petty xash drawer. If it doesn't, you forgot to record a petty cash transaction. Go back through your receipts and make sure you've entered them all.
Get unlimited access to all courses for just $25/month.Become a member
82 Video lessons · 76807 Viewers
80 Video lessons · 130939 Viewers
52 Video lessons · 64826 Viewers
59 Video lessons · 50654 Viewers
Access exercise files from a button right under the course name.
Search within course videos and transcripts, and jump right to the results.
Remove icons showing you already watched videos if you want to start over.
Make the video wide, narrow, full-screen, or pop the player out of the page into its own window.
Click on text in the transcript to jump to that spot in the video. As the video plays, the relevant spot in the transcript will be highlighted.
Your file was successfully uploaded.