In this article you will learn how to set up a petty cash in Quickbooks Online. To know more call Quickbooks Support.
A convenient supply of cash that can be used to make payments immediately for goods and services is known as petty cash. To control the petty cash box you should designate one person at your company and keep track of each and every withdrawal.
How To Set Up A Petty Cash Account
Within your Chart of Accounts,you can create a Petty Cash account. This account acts like a bank account with its own register. You will see the deposit in its register when you pull cash from your bank account into Petty Cash.
• Click on the Gear icon present on the Toolbar.
• Choose Chart of Accounts under your company.
• Click on New.
• Choose Bank (or Cash or Cash equivalents) from the Account type drop-down.
• Choose Cash on Hand from the Detail type drop-down
• For the account name, choose Petty Cash.
• Enter the balance at that particular date. Leave the opening balance at zero if the account is new. (Once you move money from the check account by writing a check or transferring fundsthe opening balance will be created).
• Click on Save and close.
How to control cash flow?
Follow these steps to control cash flow for your Petty Cash account:
• From your check account, withdraw a lump sum and then keep the cash in a cash box that is locked in the office. Do the same in QBOif you wrote a check for cash and then choose Petty Cash as the expense account. You can use Transfer Funds if you received the cash without writing a check.
• Have the person whom you have given the cash sign a slip of paper to indicate who, when, and what the money was used forwhen you give cash to an employee. Using Cash Expense record this.
• Repeat step 1 when you need to add more cash to the box.
• Each time you should add up to the amounts you’ve deposited in the box the amounts on the slips of paper and the cash you have left.
• Just like any other bank account in QuickBooks Online,you can track these transfers and expenses and reconcile your petty cash account.
Now you can set up a petty cash account. Also, you can control cash flow.
To know more on how to set up petty cash in Quickbooks Online call Quickbooks support . Also, you can write us at email@example.com. Feel free to reach us anytime; our team of executives is 24/7 available at your service. For more information visit, www.quickbooksupport.net.