The majority of businesses use a petty cash account to pay for small purchases and to cover miscellaneous small expenses. While each petty cash transaction is generally too small to include in the main company balance sheet, it is still important to record in your company accounts funds that you allocate to petty cash. By setting up a QuickBooks petty cash account you can easily track and record petty cash. If you have additional questions, contact our QuickBooks consultant in your area for help. They can quickly walk you through any issues you encounter in the software.
Follow these six simple steps to setup your petty cash account in QuickBooks:
- Open QuickBooks and click on “Lists” from the main menu in the program. Choose “Chart of Accounts” from the drop down menu.
- From the “Chart of Accounts” window, scroll to the bottom of your account list and then click on the “Account link. Now select “Bank” from the context menu then click on “Continue”.
- Choose a name for the new QuickBooks petty cash account and type it in the “Account Name” field.
- In the “Opening Balance” input field, enter your petty cash account’s opening funds balance. This should be the dollar amount you have allocated to initialize the petty cash account. If you have not yet put funds in the account, leave the balance as zero until you fund the petty cash account.
- Now click on the “As of” button and from the pull-down listing of dates, select the current date to record when you opened the QuickBooks petty cash account.
- Don’t forget to click “Save” in order to store the new account in QuickBooks. Once you click save, you are safe to click “Close” in order to exit the account.
We hope this helps! Click the link for additional QuickBooks “How To” tutorials. If you would like to set up a QuickBooks training session for you and your staff, click the Find a Trainer link above for information and class schedules of our QuickBooks trainer in your area. They provide onsite training, QuickBooks seminars, phone troubleshooting and far more.