Petty Cash is the best features of Quickbooks Online. Petty cash is a small amount of money that a business has on hand to quickly purchase diverse small expenses. If you are a new user in QuickBooks and you don’t understand how to set up and use petty cash don’t worry I can explain to you. Here I give you some tips on how to set up and manage petty cash in QuickBooks Online. If you want fast help on this topic you have an option to contact our QuickBooks Online Support team.
What is Petty Cash?
Petty cash is a part of QuickBooks Online. It is for the business to quickly buy various small expenses. The availability of petty cash is more convenient then authorizing and writing a check for small and often infrequent purchases that are typically under $25
There have Some Example uses of petty cash
- Food or snacks for a meeting or special occasion
- Making a change for customers if the primary source of change is low
How to Set up a Petty cash account in QuickBooks:
Here I can explain to you that when you transfer cash from your bank account to Petty Cash, how to set up Petty Cash Account, you should see it in this account.
- Go to Setting and choose Chart of Accounts.
- Then hit the New button.
- From the Account Type drop-down menu, Select Bank.
- From the Detail Type drop-down menu, Select Cash on hand.
- Enter Petty Cash for the account name
- When you move your money from the checking account by writing a check or transferring funds. If you already have money to use for petty cash, enter the amount in the Balance filed and choose the as of the date.
- Then select Save and Close.
- Now account has created.
How to Use Petty cash:
Now I will tell you how to use a petty cash but It’s time to put some money into it. Here how to get started and keep up with everything you do in petty cash.
Put cash in :
- Debit some cash from your account and put it in a locked cash box.
- Then record the transaction in Quickbooks Online
- If you wrote a check for cash select Create and then Check.
- Then select the Petty Cash as the payee.
- If you took out the cash without a check: select Create and then Transfer.
Take cash out:
When you give cash to an employee or use the cash amount yourself, record it with a slip of paper to find out who, when, and what money was used. It is like a receipt to track the case you have withdrawn. In QuickBooks, there is a record of taking cash from Petty cash as an expense, with Petty cash as the payment account. At all times, the amount of paper you have left and the amount of cash you have should be added to the amount deposited in the box.
In the above blog, we will learn how to set up and use petty cash in QuickBooks. I wish my information is useful to you and helpful in growing your business. If you want to get more information about Petty Cash or about Quickbooks contact our QuickBooks Support team. visit QuickBooks Support Phone Number for more information related to QuickBooks.