When you pay for small business expenses that are re-occurring, the way to handle such transactions is to set-up petty cash accounting for your business.
QuickBooks can help you organize your petty cash expenses, so that you track and manage your cash outflow effectively.
In this short guide, I will be sharing simple pictorial steps to setting up petty cash in QuickBooks, handling small transactions and recording petty cash transactions.
To Set up Petty Cash Account in QuickBooks, Click List and Select Chart of Accounts.
Click New to start the set-up process.
Select Bank and click Continue.
Enter Opening Balance: leave blank if there is no cash in hand.
If you have a balance in hand, Click Enter Opening Balance:
Statement Ending Balance: Enter the balance of petty cash account.
Statement Ending Date: Select the petty cash set-up date.
Click Save and Close to Set-up your petty cash in QuickBooks.
To Handle and Record Petty Cash Transactions:
When you incur an expenses, this is how to record your petty cash expenses in QuickBooks:
Use the Write Cheque window to process Petty cash transactions in QuickBooks.
Pay To The Order of: Write the name of the petty cashier.
Date: Select the date of petty cash transaction and Enter the total amount involved.
Account: select the expenses type in the petty cash transaction.
Once you are done, click save and close to record the transaction in QuickBooks.
Click here to learn how To Reimburse Expenses in QuickBooks