When I enter a cash expense, I have been using the date of the cash drawn from the Bank. With subsequent cash expenses, only small amounts for example parking & travel expenses, I have been linking these with cash drawn close to the date of the expense. I was reluctant to enter the date of the initial cash drawn as the bank would have been reconciled for an earlier month and could cause problems. The balance of cash is shown on the dashboard. Does the expense have to relate to the actual date of the cash drawn until that balance is used or can it relate to another cash withdrawn date?
Is the cash withdrawn from a business account or is it a personal account?
We would usually advise one of two ways to show this.
You could set up a petty cash account in QuickBooks.Then record the cash withdrawal in the main bank as a transfer to the petty cash.Therefore adding that amount to use as petty cash.Then when you create the expenses you would just be using the petty cash account to pay them,bringing that balance down as you use up the cash.
You could also set up an owners drawings liability account and record the cash withdrawal to that liability and then expense to the liability when recording the expenses you used the cash for and therefore reducing the liability back down to zero once all is spent and recorded.
Both of these suggestions would impact the balance sheet until the balance withdrawn is used and the chart of accounts (the liability or petty cash account) We have seen the first option used a lot though we would recommend speaking with an accountant if you are unsure whether either of these options are how you would like to show this.
Any questions let us know
Thank you very much Emma for your response to my question. It is a personal bank account also used for business. So far I have entered at least three cash expenses which appear to have registered ok and indicate the correct balance on the dashboard. I haven’t actually set up a petty cash account. This was the method my accountant advised when I started using Quickbooks online. I wanted to find out if the date I enter on the top left hand side of the expense page is required to correspond to the date of the cash withdrawal for the expense Or for example if I have drawn out £100 one month, is that the date I would enter for each cash expense until there is another cash withdrawal. In this case is it too late to change the date on the expense? Would this cause problems after the bank being reconciled?
Thanks for getting back to us. Allow me to take over and help you with entering cash expenses via QuickBooks Online.
To be in-line with your questions, changing the date for the transaction will not affect your reconciliation for the month. You just have to make sure that the date is still within the reconciled month.
However, I'd still suggest speaking to an Accountant. Your Accountant can provide more expert advice in dealing with this concern.
Here are additional references that might be helpful for future use:
For account-related discussion, feel free to reach out to our QuickBooks Online Support.
I'll be around to help if you have additional expenses and reconciliation concerns. Have a great rest of your day.
Thank you RoseMarjorie for your quick response. I find this question is quite difficult to explain. I am trying to understand how the process works. I am assuming that you must use a date that relates directly to the cash withdrawn in order to achieve a cash balance? In the first two expenses I have linked the expense to a) £40 cash withdrawn and b) £100 cash withdrawn. From these two the balance has followed. The following expenses I have linked to the next cash withdrawal date close to the purchase dates and again the balance is correct. Using these dates Quickbooks seems to have taken the balance from the overall cash available. Each time I enter an expense this way, is it necessary to have the date of the expense/s linked to the closest date of the cash withdrawn? Or must I link it with the cash withdrawn amount drawn initially until this figure is has been used? Then account for another cash expense with a new cash withdrawal?
I appreciate the follow-up, @Dickens.
Let me help add some details about the entered cash expense.
You can match it to the closest date of the transaction with the same amount, however, it could cause some issue in the reconciliation and confusion with an accountant in identifying the transactions.
For this situation, I'd agree using a petty cash account as suggested by @EmmaM. You can use the petty cash as your pending transaction if the transaction isn't cleared on your bank on the transaction date. This way, you can post/add it once the expenses are already posted on your Bank statement.
Keep me posted if you have additional questions about this process. I'll be around if you need help.
Thank you LilyC for your response. Can I continue as I am at the moment with the cash expenses? The first two expenses, I am happy with as they are linked with the cash withdrawn and are within the cash withdrawn amounts. The following two I have linked with two separate cash withdrawals that link with the dates of the purchase. The actual expense details for each expenses/s are detailed as a transaction, and can be viewed by the accountant. I imagine as long as the expense is linked with an actual cash withdrawal? Without that there would be no connection to the actual cash? To bring the two expenses in line with the first two, should I change the date to the £100 cash drawn in May? Or is it ok to keep the dates as they are?
We would be grateful if you can provide us with as many screen shots as possible of how you have recorded the transactions.
Or you can contact our customer telephone support line 0808 234 5337.
Thank you for your reply JohnC. Today I have been looking at the expense summary and and comparing the earlier cash withdrawn transactions and the expense transactions. I don’t think there is anything incorrect with the later transactions, as the cash balance figure is correct. The balance figure appears to be taken from the first two cash withdrawals in April =£40 and May =£100, which were categorised as CASH. The subsequent cash withdrawals in June, July & August were categorised as the “personal named account”. I wasn’t aware of this detail until having looked back at the transactions. and I assumed the expense figure would be deducted from these cash withdrawals. Therefore the category of CASH is important & appears to act as the petty cash whereby the expenses are drawn from, giving the balance figure. Of course when the original cash balance is depleted, I will have to categorise another CASH withdrawal for any new expenses. If this eventually makes sense, please let me know. I can then continue entering transactions and reconcile for August.
Without the relevant screen shots or being able to do a screen share with you it is very difficult for us to assist you.
We would be grateful if you can contact the telephone support line, 0808 234 5337.
Hello JohnC, I am unfamiliar of how I would send you a screenshot of the transactions. Unfortunately I can't divert my time too much on this, as I have some other work to do at the moment. If you can advise how to take and send you the screenshot, then I may try to follow this up tomorrow.
The short key command on a Windows device is Alt + PrtScn, you will need to save the screenshot to your computer and then attach this to your reply by selecting the 'Browse' option.
If you are unable to follow this, it may be easier to contact our phone support who are able to setup a screen-share to view your QuickBooks accounts in moments
Thank you GeorgiaC,
I use an Apple Mac computer (Mac OS X ElCapitan). Do you have the instructions to do screenshots on this? Also if I took a number of screenshots, would this be saved on the opening page of the computer. I think if I want to get an answer to my original question, it would be best to contact the Quickbooks Online support team. Would I have to explain everything from the start or could they refer to the community questions? I will let the Community know if I get a definitive answer.
Let me help you out and share my thoughts regarding your query.
Hold down the keys: Command + Shift + 3. You should hear a brief camera sound. This is the most basic screenshot, it will take a picture of your whole screen at that moment. You can find the screenshot as a PNG file on the desktop with the name Screenshot time/date.
I'd also suggest for you to contact our Technical Support team so you can get this resolved as soon as possible. That way, you'd have more time taking care of your business and spend less time on issues.
Here's how you can contact them:
You can also view this article on how you can add or match downloaded bank transactions: Add and match downloaded bank transactions. It even includes a video for both processes, for your reference.
Please feel free to get back to us if ever you have any other questions or updates. I'll be looking forward to hearing back from you.