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 we can explain to you. Here we will 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.
There is a wide scope of accounting programming that is utilized to deal with this exchange. However, QuickBooks holds an unmistakable place in the market among those accounting software. QuickBooks Online Accounting Advanced Software is available for business and is extremely helpful in setting up a systematic command over Petty Cash expenses. A money float is really helpful and in every case extremely supportive to meet little and different costs. These include postage, utilities, office costs and crisis supplies that are needed on time.
What is Petty Cash?
In very simple language ,what is petty cash? Well, petty is a modest quantity of money that is only for little investment. The vast majority utilize this money for things like purchasing office supplies, paying for postage, for any business setup expenses, etc. Petty cash is a typical type of impress system that is also called I.E. monetary accounting framework. It is a pre-assigned invest that is incorporated with the spending limit and renewed after a set time frame or when it runs out.
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
Nowadays most business owners prefer to use petty cash accounts to fund small purchases and spend on payments. Although these small individual petty cash transactions are really too small to include in the balance sheet of the company. However, being an accountant Adviser, I would recommend, you must record the transactions regarding petty cash into your company accounts. You can easily handle this by setting up a petty cash account in the Intuit QuickBooks business accounting application. Here users are provided with a bunch of features including recording and tracking their petty cash amounts. Here we 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 we 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.
How to record Petty Cash investment
The very two normal options to increase the petty cash fund are to write a check out to cash and cash it, and another is to withdraw cash from your bank account with a debit card or ATM card.
Cash from the Check
- Go to the Banking menu, choose to Write Checks.
- Now List “Cash” as the payee and in the payment column record the amount of the check.
- From the Account drop-down section, chose the Petty Cash bank account.
- Then hit on the Record.
Cash from the ATM
- Go to the Banking menu, then choose the option Transfer Funds.
- From the Transfer Funds menu, hit on the option of the Petty Cash bank account.
- Here you will have to list the amount of cash withdrawn in the field of Transfer Amount. And write “Petty cash withdrawal” in the memo field.
- And click on Save.
As you will soon get to know that setting a Quickbooks petty cash account is never made so natural to follow. Now let us see what are the different steps to record petty cash investment. Here is the simplest explanation to record your petty cash investment:
- Firstly, explore your Chart of Accounts and then select the Petty Cash financial balance option.
- In your record register, open a new transaction section. It’s not important to record a payee, however are free on the off chance that you need. In the case that all the negligible money was spent on one payee, then you can enter a payee name. For example you are free to save a name as “Hynautic Office apply” or “coffee cache”. On the other hand leave the payee field clear, if you want.
- Fill the measured amount of petty cash spent in the payment section that are given there. In the Account drop-down menu, choose the business ledger that corresponds with the buy.
- On the off chance that the negligible money costs range different records,In this case, select the Splits capacity and record the cost sum for each record.
- You are done now select Save option.
In the above blog, we will learn how to set up and use petty cash in QuickBooks. We wish our 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. Dial toll-free +1-844-442-0333 for more information related to QuickBooks.