Imagine that, in a situation, you urgently need a small amount of money from the business for a quick purchase, but it takes a lot of time to get the amount, then what will happen? Don’t be panic this situation will never come, because here in this blog, you will know the solution for this situation, and that is ‘Petty Cash in Quickbooks’. Yes, in this blog we are going to know about the Quickbooks petty cash. Let’s start the blog with the overview of the petty cash account in Quickbooks:
What is Quickbooks petty cash?
Petty cash is an amazing feature of Quickbooks Online which acts as a small amount of money for small expenses or for a quick purchase. That means you can invest a small amount of cash at any time and anywhere in Quickbooks.
What is the procedure to set up petty cash in Quickbooks
- To set up the petty cash account in QB, first of all, you have to go to the ‘Settings’ option.
- After going to the ‘Setting’ option, you will see an option of ‘Chart of Accounts’ option just click on it.
- Now click on the ‘New’ option.
- Then go to the ‘Account Type’ tab and choose the ‘Bank’ option from the drop-down list.
- Next, go to the ‘Detail Type’ drop-down and pick the ‘Cash on Hand’ option from the list.
- Now its time to enter the petty cash for the account name.
- In the next step, an opening balance will be created, whenever you move money from the checking account by writing a transferring fund or check.
- And if in case, you already have money for petty cash, then in the balance field enter the amount, and choose the date.
- In the last step, click on the ‘Save and Close’ option.
- Now the setup process of Quickbooks petty cash is done. Let’s know how to manage it.
How to manage petty cash in Quickbooks
Putting process of petty cash in QB:
- At first, withdraw some from the current account and then put it in a locked cash box.
- Now record the transaction in Quickbooks, and follow the below steps according to the situations.
- If you wrote a cheque for cash, then follow the below steps:
- Click on the ‘New’ tab, and select the ‘Cheque’ option from the list.
- Then click on the ‘Petty Cash’ and then on the +Add new, if the petty cash is not in the payees list.
- If you withdraw the cash without writing a check, then follow the procedure:
- Click on the ‘New’ tab and then on the ‘Transfer’.
Recording process of petty cash investment :
- To record the petty cash investment in Quickbooks open the ‘Chart of Accounts’ and select the ‘Petty cash balance’ option from the list.
- Now go to your record register and open a new transaction section.
- After that fill the measured petty cash amount spent in the payment section.
- Now go to the Account tab and choose the business ledger which corresponds with the buy.
- Click on the split capacity & record the total cost for each and every record, if the negligible money cost range different records.
- If you already have done all the above steps then click on the ‘Save’ option.
Take cash Out:
Whenever you give cash to anyone, maintain a proper record with a slip of paper to know who, when, and what the money used for. There is a record of taking cash from petty cash as an expense in Quickbooks with petty cash as the payment account.
Petty cash in Quickbooks account is a wonderful facility provided by the Intuit. We hope you will enjoy by reading this blog, we tried our best to provide information related to the QB petty cash. Further, if you are facing any problem to understand this blog, then you can get help from our Quickbooks ProAdviosr. At last, we will suggest you get the facility of petty cash and make your accounting more easily.