How Can You Set Up Petty Cash In QuickBooks?
As we know, petty cash is a small amount of fund which is kept aside to pay for small expenses for example office expenses, stationery expenses, etc. The amount is so small that the company or business does not want to bother itself by writing a check for it, and want to meet the expenses through cash only.
Now, if you are using QuickBooks as your accounting software, then you will be able to set up, track, and manage the petty cash, and its usage in QuickBooks itself. With the help of the below writing, we assure to guide you through the process of setting up and tracking the petty cash in QuickBooks.
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Steps To Setting Up Petty Cash In QuickBooks
You can follow the below steps in the same order to set up the petty cash account in the QuickBooks:
Step 1. First of all, go to thesettings (gear icon) > chart of accounts > then click on New.
Step 2. After that, you need to click on the Account type drop-down menu and choose Bank.
Step 3.In this step, you will have to click on the detail type drop-down menu and choose cash on hand. And then you need to enter the Petty cash for the account name.
Step 4.Once you are done with step 3, an opening balance account will be created when you move money from a checking account by check or fund transfer. In case you have an existing balance, enter the amount as of the date in the balance field.
Step 5. Lastly, click on save and close to complete the process.
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Steps For Managing And Tracking The Petty Cash In QuickBooks
Once you are done with the process of setting up the Petty cash account in QuickBooks, you need to be aware of the tips and tricks of managing it as well. Let us look at the various aspect of managing the Petty cash account in QuickBooks.
Process For Putting The Cash In The Petty Cash Account QuickBooks
Step 1. First of all, you need to withdraw cash from the current account and put it aside in a cash drawer.
Step 2. Now for recording the transaction in QuickBooks, you need to click on New (plus icon) > check > Petty cash as the payee. If you are using a fund transfer, just replace the check with the transfer.
Get Help Petty Cash Recording Issues & Problem
For taking the cash out from the petty cash account, you need to record it on a paper slip for each and every transaction. The paper slip should detail who, when and for what purpose the money was taken. For recording the journal entry, cash out should be recorded as the expense and petty cash as the payment account.
The petty cash account should be reconciled on a daily basis to avoid any hassle and mistake and also for the easy recording of the transaction, after that you can move your paper slips for long term record keeping because all the transactions will already be there in the QuickBooks.
In case you need any further information at any point, you can dial a QuickBooks Help Phone Number and AccountsPro QB technical helpdesk will help you.