Petty cash transactions are small business expenses usually paid with cash. These transactions do not merit writing a check. Usually made for reimbursement or office supply, these funds need to be reconciled periodically in order to ensure that your accounts match properly. It is very important to record these transactions because otherwise, you may lose the information related to it.
QuickBooks financial management software has multiple ways to enter, track and record cash payments for the business purchases. It is not possible always to make payment for purchases with a check or credit card.
- 1 Petty Cash in QuickBooks
- 2 How to Enter Petty Cash Receipts in QuickBooks?
- 2.1 Steps to Enter Cash Receipts into QuickBooks
- 2.2 Enter Purchase Information:
- 2.3 How to Enter Cash Receipts in QuickBooks Desktop?
- 2.4 How to Enter Cash Receipts in QuickBooks online Without an Invoice?
- 2.5 How to Enter Cash Receipts in QuickBooks Billing Statement?
- 2.6 How to Enter Store Receipts Into QuickBooks?
Petty Cash in QuickBooks
Usually, when you make any purchase using petty cash then expenses are still counted or recorded within your statement. This only helps match income or expenses with their accounts.
When you set up a petty cash account, entering cash receipts is quick and simple. But to know “How to enter petty cash receipts into QuickBooks” is that we are here to learn. Thus wasting no time further, let’s find how to enter cash receipts in QuickBooks. Read our another article to Learn How to “Activate Petty Cash in QuickBooks Online“.
How to Enter Petty Cash Receipts in QuickBooks?
In QuickBooks, users need to set up petty cash before they can start posting transactions into this account. To set up a petty cash account, follow the steps provided below:
- Go to Settings.
- Click on Chart of Accounts.
- Click on New and then Bank.
- Select Cash on Hand from the drop down menu.
- Type in Petty Cash for the account name.
- Enter money you have for petty cash into the Balance Field.
- Click on Save and Close.
Now when you create transactions in QuickBooks, you can select to post them to the petty cash account. This way, you won’t have to create a check for the transaction.
To record the cash you’ve kept for petty transactions, follow the steps provided below:
- Click on +New.
- Click on Transfer.
To record the cash if you wrote a check for the same, follow the steps provided below:
- Click on +New.
- Click on Check.
- Click on Petty Cash.
If you haven’t set up petty cash, you can create Add New to create a new account.
Steps to Enter Cash Receipts into QuickBooks
- Go to and select the Lists -> Choose Chart of Accounts -> Click the Account drop down -> Click New. Select -> Bank -> Click continue.
- Enter a name for the account into the Account field like -> Petty Cash or Cash Drawer. Choose 0 as the opening balance -> Select the current date in the As of field. Click -> Save & Close.
- Select -> Lists menu -> Choose Chart of Accounts. Choose the petty cash account that you created.
- Then enter a payee, (optional) else leave the field blank that makes easy to track this information for you if you require. Enter the receipt amount in the Payment column and move on to the next line.
- Select the Account drop down -> Choose the expense account with which you want to associate the purchase. Click -> Splits if you need to split the amount between accounts. Click -> Record.
Enter Purchase Information:
While entering the cash receipts in the petty cash account you need to fill up the following purchase information before saving the account:
- Reference #: It is optional. You are supposed to mention the identifying number from the purchase receipt.
- Date: The QuickBooks Online Simple Start version automatically inserts the current date. You can amend it to the actual purchase date.
- Purchased Form: You can enter a vendor (optional). If your transaction covers multiple petty cash expenses you can leave it empty.
- Amount: The total amount of the purchase made. You can enter a calculation.
- Memo: It is optional. The memo appears in the register and on reports that include this purchase.
- Account: Here you need to specify the account should and the also the purchases if made for multiple expenses.
- Customer: You can enter a customer name or leave it blank.
- Billable: Providing the information about the bills is optional. You have to choose this box if you want to bill this purchase to the customer chosen at the left. If you don’t see a Billable column, billable expense tracking isn’t set up.
- Mark up: This is again optional as you really can’t view it.
- Tax: This tax column appears only if a Billable column appears and if sales tax is turned on.
- Class: Choosing a Class is optional as you don’t see Class, class tracking is turned off.
Hope your query regarding “How to enter cash receipts into QuickBooks” has been sorted out. If in case you are still facing the issue and are not able to enter cash receipts then we recommend you to connect with our Quickbooks proadvisors at the earliest. This way you will help yourself in fixing your issue right away.
How to Enter Cash Receipts in QuickBooks Desktop?
Entering a cash receipt in QuickBooks desktop is quite easy and can be done by following the steps provided below:
- From the Customers menu, select Create Invoices.
- Add or Select a Customer.
- Enter relevant information in the fields provided. You can also enter terms for the transaction.
- When selecting an account to which the transaction belongs, click on Cash Account.
- Click on Save.
Your cash receipt is now added into QuickBooks desktop. However, if you created an invoice regarding the transaction, then you need to mark it as paid. To do so, follow the steps provided below:
- Go to the Customers Menu.
- Select Invoices.
- Select the invoice corresponding to the cash receipt and click Mark as Paid.
Make sure that you mark the transaction as paid, otherwise you’ll encounter issues while creating reports or reconciling statements in QuickBooks.
How to Enter Cash Receipts in QuickBooks online Without an Invoice?
In QuickBooks online, users can record cash receipts without an invoice by recording them as deposits or sales receipts. To do so, follow the steps provided below:
- From the New+ icon, select Sales Receipt under Customers.
- Select a Customer from the drop down list.
- Select Product/Service for the receipt.
- Enter the Amount for the cash receipt.
- Click on Save and Close.
When cash receipts are too small, users often prefer to enter them without associating them with an invoice. This income can be reflected in QuickBooks by associating it with a deposit or sales receipt.
How to Enter Cash Receipts in QuickBooks Billing Statement?
To enter cash receipts in QuickBooks billing statement, you can record the cash receipt as a deposit. To do this, follow the steps provided below:
- Go to the Customer menu and select Sales Receipt.
- Combine the receipt with the Undeposited Funds Account.
- Enter relevant information and click on Save and Close.
- Now, select Statements/Create Statements from the customer menu.
- Select the apt A/R account and date range for transactions. Include the date of which the cash receipt was created.
- Click on Create.
In this new billing statement, the cash receipt will be included.
How to Enter Store Receipts Into QuickBooks?
If you wish to track sales via QuickBooks, you can record store receipts. However, you should also maintain all the receipts for each sale despite recording it into QuickBooks. The main advantage of recording store receipts in QuickBooks is that you can create reports using them.
To enter store receipts into QuickBooks, follow the steps provided below:
- In QuickBooks, Select Enter Sales Receipts under the Customers menu.
- Select Daily Sales Summary from the template list.
- Click on Customer and Type in Register Summary. Select Quick Add.
- Select Set Up.
- Enter the amount for each transaction on separate lines.
- Enter the quantity of each sold item.
- Click on Insert Subtotal Line after clicking on an empty line below all transactions.
- Enter tax amount and sales tax percentage.
- Select mode of payment from the drop down list.
- Create another line, and enter the amount paid by the customer into it.
Cash receipts can easily be recorded into QuickBooks, which can also use the data to create a detailed report. Through this report, users can gain valuable insights into petty cash transactions and minimize their expenses. To know more, you can get in touch with our QuickBooks ProAdvisor experts.