QuickBooks always comes up with new, secure, and latest tools with the enhanced version. One of the features is recording petty cash and expenses in QuickBooks. If you want to use petty cash first you need to set up petty cash in QuickBooks.
QuickBooks petty cash is already a common form of the financial accounting system and it is a pre-specified amount that is taken out or separated from the budget.
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Advantages of Petty Cash
Using petty cash there can be many advantages such as those mentioned below.
- Bank Type account – Petty cash is the cash in the hand
- Secured Box and minimize the risk – A petty cash is a secured lockbox and you can keep some money to reduce the risk
- Manage account cash sheet – All the transactions and expenses are tracked on the sheet
- Keep Spending with all details – save all the receipts for each transaction to keep your petty cash in the manner
- Easy to use – It is easy to use and more convenient supply of cash
- To keep record payment expense transactions – You can save all the transactions from the fund as the transaction.
How to Record Petty Cash and Record Expenses in QuickBooks
How to Record Petty Cash
Record the petty cash just follow the given steps below :
- Explore the chart of accounts
- Select Petty Cash financial Balance Option
- Open new transactions in the record register. You need to record the money but not needed to record the payee, then you can enter the payee’s name
- Mention the checked amount of payee cash that is spent in the payment section. Select the business ledger which is related with buy under the account drop-down menu
- On the off chance that negligible money costs range different records. Select the breakup capacity and record the cost sum for each record
How to Record Expenses in QuickBooks
Now let’s come to the next thing How to Record expenses in QuickBooks. Anything you buy with a credit card, debit card, online payment, etc is called an expense in QuickBooks. You can see below how you can record the expenses. Read another article to learn How to “Record Cash Withdrawal in QuickBooks“.
- Open expenses in QuickBooks
- Go to Create menu and select Expense under Suppliers
- Select a payee, if it’s a new payee add the name and click Add, you can also click Details and add more information or Save and do it later
- Select the account from which money came for this purchase. Use a chequing account if you are using a debit card
- Enter the date you made the purchase
- Select the payment method for this purchase. Select cash, cheque, or credit card
- Select a category under account for the item you have paid
- If you purchased items from different categories then you can enter each category in different lines by clicking add lines
- In the description, the field adds some notes about this purchase
- In the amount, field add the amount for this field and add the applicable sales tax in the field
- Click on save and new to Save this expense and start another one.
- Save and close if it’s done.
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