Petty Cash Account Issues

[MonicaG]

Attempted to reconcile the petty cash account today but I found it has never actually been reconciled. It has transactions entered back to 2013, and the last payment to the account was in June 2018. When I clicked on Mark All and unclicked that last deposit, it actually reconciled.

I didn't click Reconcile Now, but is that what I should do? And then, how do I handle it from there? There are no entries since that June 2018 deposit. The current amount of petty cash available is much less than that deposit, but there are no records of how the funds were spent.

I came on board in January and have been keeping track of the account, but how do I reconcile with that 8 month gap? If I reconcile the old transactions (2013-2018), the new beginning balance would be equal to the deposit in June 2018. Would I then show the current petty cash balance as the ending balance? And how do I account for the complete lack of information as to how the funds were spent?

As always, would appreciate any advice. And thanks for your patience...

[Anonymous]

Hello, @MonicaG.

Thank you for posting in the Community. I'm here to help guide you in the right direction in reconciling your Petty Cash account.

Since the transactions were from previous years, you can reconcile them without having to do so one month at a time. The recommended method to reconcile them is one year at a time.

You can refer to this article for more information: Reconcile an account for multiple months or years of transactions and financial statements.

Before doing the reconciliation, it'd be best to consult your accountant first to verify if this is the best method you can use to reconcile statements and transactions.

If you need some related articles in the future, please feel free to visit our site: Help articles for QuickBooks Desktop.

Keep me posted if you have additional questions about the reconciliation process. I'm always here to help you further.