Petty cash in QuickBooks is a Pre-specified amount that is made out of the budget and used to pay for a small expenceses or indiviual transaction. And this amount is spent according to the need and is rebuilt again after a period or when it runs. But without a petty account, it is difficult to keep a record of regular expenses. By using a petty account for QuickBooks petty cash, you can easily track all expenses and accounting data. If want to know How to Setup a Petty Cash Account or how to manage Quickbooks petty cash or how to take cash out then read complet post by reading complet post you will understand all that we discussed above.
Step to Set up petty cash in QuickBooks
To smoothly setup petty cash in QuickBooks you can follow bellow discussed points. Bellow we discussed step by step process to smoothly setup petty cash in Quickbooks.
- Open Quickbooks and go to the setting option
- Then choose a chart of account & tap on new
- Then in the dropdown menu of the account type select your bank
- Then choose cash in hand from the dropdown list of the detail type
- After that Mentioned petty cash for account name
- If you move money from the checking account by writing checks or transferring funds then opening balance is created. If already have an amount for petty cash then mention the amount in the balance field choose a date.
- And finally, click on save & close
How to manage QuickBooks petty cash
Want to learn about Quickbooks petty cash management process, then, don’t worry here we tried to discuss the best process to manage Quickbooks petty cash or petty cash account. To manage petty cash you need to follow step by step process with these steps you can easily put cash or take cash out
Step to put in cash:
- First, withdraw some amount from the checking account after that put that cash in a locked cash box
- After that record transaction in the cash box
- When wrote check for cash
- If wrote a check for cash then choose new then check after that select petty cash as the payee. If petty cash is not available in the list then click on add new.
- If take cash without writing checks then go to new choose transfer
Take cash out
When we take cash out or use petty cash then in that time we maintain a record of that in the form of paper slip, with it we can easily track who use that cash and for what purpose.
Above we discussed all essential information about petty cash or petty cash in Quickbooks if you want to know more about that then you can make contact with Quickbooks certified Proadviosrs