Keeping cash on you may not be safe or convenient in some situations. It will be a good idea, however, if you keep it securely in a petty cash account. Petty cash, like your wallet, can be used whenever you need it. Your transactions can be managed using the same method. It can also be recorded on the balance sheet. Here you will get some points about how to set up & use petty cash in QuickBooks and if you want to know more about other topics like how to resolve QuickBooks error 1935 and the benefits of QuickBooks proadvisor then click on these links.
The purpose of this blog is to teach you how to set up a petty cash account. In addition, we will show you how to record, create, manage, and enter petty cash receipts in QuickBooks.
How to Set up a Petty Cash Account in QuickBooks?
This section of the post should be read thoroughly if you want to set up a petty cash account in QuickBooks. The procedure for creating this account has been detailed here. To summarise, you can open the QB software and navigate to Lists. To access the Chart of Accounts, click on it. It will show you a list of accounts. As you scroll down the list, you’ll notice a link for Account. Open it, then select Bank. To proceed, the account must be named and the opening balance must be entered.
The remaining instructions are required to complete the setup of your QuickBooks petty cash account. These are provided below.
- Start your system and launch “QuickBooks.”
- Open “Lists” from the software’s main menu.
- Select “Chart of Accounts.”
- When you open the “Chart of Accounts,” a list of the accounts will appear. Scroll to the bottom of the list.
- Click the “Account” link.
- Select “Bank” from the contextual menu.
- Then click “Continue.”
- Fill in a suitable name for the newly created petty cash account in the “Account Name” field.
- Find the option “Opening Balance.” Fill in the balance of the newly created petty cash account’s opening funds.
- Tap the button for “As of”.
- A dropdown list will appear. You will find several dates on the list. Select the present date.
- For the purpose of storing the information of the account, you can tap “Save”.
- Lastly, press “Close” and you will be able to exit your account.
How to Create a Petty Cash Account in QuickBooks?
To create a petty cash account in the QuickBooks software, go to the COA or Chart of Accounts option. The account can be selected via COA. This is followed by the selection of New. This is the option you need to create the petty cash account. The steps that must be taken right now are listed below.
- Launch “QuickBooks.”
- Navigate to the “Chart of Accounts.”
- Select “Account” in the bottom left corner.
- Select “New.”
- Make sure that “Bank” is selected as the new account type in “Account.”
- Make the account “Petty Cash.”
- Enter “0” as the opening account balance.
- Select “Save & Close.”
How to Enter Petty Cash Receipts in QuickBooks?
Check out this method for entering petty cash receipts into QuickBooks. As the first step, you must open the Settings menu. Go to the Chart of Accounts and select New. Choose Bank, then Cash on Hand from the dropdown menu. Set the account name to Petty Cash and enter the amount in the Balance field. That’s all there is to it.
- Click on the “Settings” of “QuickBooks”.
- Head to the “Chart of Accounts”.
- In the third step, you must select “New.”
- Now, select “Bank.”
- Following that, select “Cash on Hand.” This option can be found in the dropdown menu.
- The account’s name should be set to “Petty Cash.”
- Find the “Balance Field.” Enter the amount of money you want to set aside for petty cash.
- You’ll see “Save and Close.” To complete the method, click on it.
After that, whenever you make a transaction in QuickBooks, you can choose to directly post it to your petty cash account. As a result, you will not be required to write checks for your transactions.