Handling cash

Setting up your petty cash account

By using a Bank account to track your petty cash, it will appear at the top of your balance sheet reports with your other savings and checking accounts.

Note: To display this account at the top of your Chart of Accounts and at the top of your balance sheet, click on the diamond next to the account name and drag it to the top of the Chart of Accounts list.

To add your petty cash bank account:

  1. Choose Lists > Chart of Accounts.
  2. Choose New from the Action pop-up menu ( image).
  3. From the Type list, choose Bank.
  4. Enter the account's name, such as “Petty Cash.”
  5. (Optional) Enter an account description.
  6. Enter the Opening Balance amount and the “as of” date.

Recording cash withdrawals from your checking account

To record cash withdrawals from your Checking account:

  1. Choose Lists > Chart of Accounts.
  2. Select your checking account, and then choose Use Register from the Action pop-up menu ( image).
  3. In the Number column, remove the supplied check number and type “ATM” or “CASH” unless you cashed an actual check from this account.
  4. Enter the amount withdrawn in the Payment column.
  5. In the Account column, choose your Petty Cash account.
  6. Click Record. The amount will appear in your Checking account as a withdrawal and as an increase in your Petty Cash account.

Entering cash expenses

To enter cash expenses into your Petty Cash account:

  1. Choose Lists > Chart of Accounts.
  2. Select your Petty Cash account, and then choose Use Register from the Action pop-up menu ( image).
  3. Enter the amount spent in the Payment column.
  4. In the Account column, enter the appropriate Expense account.

    If you prefer to make only one entry per day or week for your petty cash expenses, use the Splits feature for cash that was spent on items represented by different expense accounts.

  5. Click Record. If you withdraw money from your checking account for a particular cash expense, you can enter the transaction directly into your checking account.

To record cash expenses in your Checking account:

  1. Choose Lists > Chart of Accounts.
  2. Select your Checking account, and then choose Use Register from the Action pop-up menu ( image).
  3. In the Number column, remove the supplied check number and type “ATM” or “CASH” unless you cashed an actual check from this account.
  4. Enter the amount in the Payment column.
  5. Click the Splits button to enter your accounts and related amounts.

Using business cash for personal expenses

If you use business cash for personal expenses, you can keep track of the amount now owed to the business. Refer to the “Mixing business and personal funds” document available from the Document section of the New Company Setup Assistant.