QuickBooks financial management software has multiple ways to track, record, and enter cash receipts for business purchases. It is not possible always to make payments for purchases with a check or credit card. Learn how to enter cash receipts into QuickBooks (Desktop and Online).
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 supplies, these funds must be reconciled periodically to ensure that your accounts match properly. It is very important to record these transactions because otherwise, you may lose the related information.
How to Enter Cash Receipts into QuickBooks (Desktop and Online)
Entering a cash receipt on QuickBooks (Desktop and Online) is quite easy and can be done by following the steps provided below.
Enter cash receipts in QuickBooks Desktop
- From the Customers menu, select Create Invoices.
- Add or Select a Customer.
- Enter the 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 to the 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.
Enter cash receipts in the Billing Statement
To enter cash receipts in the 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 the 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 on which the cash receipt was created.
- Click on Create.
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 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 then 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, then select Bank -> Click to 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), or else leave the field blank that makes it easy to track this information for you if you require it. 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.
- Lastly, click Splits if you need to split the amount between accounts.
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 and 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 certified QuickBooks Proadvisor at the earliest. This way you will help yourself in fixing your issue right away.
