How to Enter Petty Cash Expenses in QuickBooks Online & Desktop?

How to Enter Petty Cash Expenses in QuickBooks Online & Desktop?

QuickBooks comes up with secured and smart features to boost the accounting experience of users. Recording petty cash and expenses are one of the helpful features. Petty cash is basically a supply of cash that can be used to pay small expenses. In addition, you can keep track of every transaction such as when the cash is added or taken out from the current account in QuickBooks. If you are not having any clue how to enter petty cash expenses in QuickBooks, we will help you to understand the whole criteria.

In this comprehensive guide, we will talk about how to enter cash expenses in QuickBooks Desktop and QuickBooks Online with detailed instructions and important tips. Continue reading to know more.

How Do You Enter Cash Expenses in QuickBooks Online?

A petty cash account is important to create so that when you move your cash from the bank account into petty cash, it can be seen in this account. To set up the petty cash account in QuickBooks Online, you can perform these steps stated below:

  • Navigate through the QuickBooks “Settings” by clicking on the wheel icon.
  • Then, switch to the “Chart of Accounts” option.
  • Select the “New” button.
  • Now, click on the “Account Type” drop-down menu and select the “Cash and Cash equivalents” option.
Cash and Cash equivalents
  • Press the “Detail Type” drop-down menu and select the “Cash on hand” option.
  • For entering cash expenses in QuickBooks, you have to enter “Petty Cash” for your account name.
  • Once you do so, the opening balance will automatically be created when moving your money from a checking account by transferring funds or writing a check.
  • In case you have the cash to use for the petty cash then you can go to the “Balance” field to enter the amount and select the “As of date”.
  • Press the “Save and Close” button.
Enter Petty Cash expenses

By executing these steps, you can easily set up a petty cash account. Now that you have learned how to enter petty cash expenses in QuickBooks, you can put some cash or take out money from your current account.

How to Manage the Petty Cash Account?

Besides creating the account, users can manage their petty cash account in QuickBooks(Post Petty Cash in QuickBooks). Whether it’s about adding some cash or withdrawing some money, QuickBooks makes it possible for you to keep up with every task you perform in a petty cash account.

Important Tip: To handle the petty cash account, one should keep a dedicated person who can keep track of every withdrawal and manage your petty cash.

If you want to add some cash to your petty cash account, you can perform the following steps in QuickBooks Online:

  • First of all, you can withdraw some money from the current account and put the cash in a locked cash box.
  • After this, you can record your transactions in QBO.
  • If you write a cheque for cash then you can do the following:
  • Click on the “+New” button.
  • Then, select the “Cheque” option.
  • Make sure you choose “Petty Cash” as a payee.
  • If you don’t see the petty cash in the list of payees then you can click on the “+Add New” button.
  • If you take out the cash without writing any check then you can do the following:
  • Click on the “+New” button.
  • Then, choose the “Transfer” option.

This is how you can add cash to a petty cash account. This should also be noted when you use petty cash or give it to your employee then you should record it along with a paper slip to track what when and whose cash was used for. This works like a receipt so you can track the money that you take out.

Tip: It is suggested to reconcile your petty cash account. By doing so, you can move the paper slip to long-term record keeping because your transactions are available in QuickBooks.

How to Enter Cash Expenses in QuickBooks Desktop?

Petty cash is a pre-specified amount that you can take out or separate from your budget. If you want to enter or record the petty cash, first you will have to set up the petty cash account in QuickBooks Desktop.

In the following discussion, we will show you to record petty cash and expenses in QuickBooks with easy steps. Read carefully and learn how to enter petty cash expenses in QuickBooks Desktop.

Record the Petty Cash in QuickBooks Desktop

  • Go through the “Chart of Accounts” menu.
  • Then, choose the “Petty Cash Financial Balance” menu.
  • Here, you can open the new transaction in your “Record Register”. Then, you will have to record the money and add the name of the “Payee”.
  • After this, you need to specify the checked amount of the payee cash that you spent in the “Payment” field.
  • Now, you can choose the business ledger that is related to buying. This can be done using the “Account” drop-down menu.
  • Here, you can choose the breakup capacity and then record the cost sum for every record.
  • Once done, save the details.

Record the Expense in QuickBooks Desktop

  • To get started with the expenses, you can click on the “Create” button.
  • Choose the “Expense” option from the “Suppliers” category.
  • After this, choose the “Payee” name. If you are adding the new payee then click on the “Add” button to enter the payee name, select the “Details” option and enter the information. Make sure you save all the details.
  • Choose the account from where the money came from
  • If you use a debit card, make sure you use a checking account.
  • After that, you can add the date when you made the purchase.
  • Then, choose the “Payment Method” for the purchase. You can choose between a credit card and a cash cheque.
  • Thereafter, you can click on the category from the “Account”. In case you purchase your items from some other category then you should enter each category by adding lines.
  • If preferred, you can add the notes or description about the purchase.
  • Move to the “Amount” field and enter the amount.
  • In the “ Sales Tax” field, you can add the applicable tax.
  • Press the “Save and New” button if you want to start with more expenses. Otherwise, click the “Save and Close” button.

This is how you can record cash and expenses in QuickBooks Desktop. Make sure you enter the correct details in each field and keep your accounting books accurate.

In a Nutshell

Petty Cash works like a secured and safe lock box where you can store the money to minimize the risk. In addition, it is easy to use and manage transactions. By recording the payment expense transactions, you can save the transactions from the fund. Hence, you should create petty cash in QuickBooks to pay small expenses. Here, we have already shown you how to enter petty cash expenses in QuickBooks for both desktop and online versions. We hope the guide is useful for you.

If you want to make bank deposits or run the report for uncleared checks in QuickBooks, we have some helpful information for you:

  • How to Run an Uncleared Check Report in QuickBooks?
  • How to Make a Deposit in QuickBooks Online?
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