It's my pleasure helping you set up petty cash in QBO, @Ade23.
First, you'll have to create a petty cash account. Here's where you keep money on hand to pay for minor cash items such as stamps, office supplies, tips, parking tolls, etc.
Go to Gear (Settings) icon and select Chart of Accounts.
From the Account Type drop-down, choose Bank.
From the Detail Type drop-down, choose Cash on hand.
Enter Petty Cash for the account name.
The opening balance will be created when you move money from the checking account by writing a check or transferring funds. If you already have money to use for petty cash, enter the amount in the Balance field and choose the as of date.
Tap Save and close.
Next, here's how to manage petty cash:
For Cash In:
If you wrote a check for cash: select Create ⨁ and then Check. Choose Petty Cash as the payee.
If you took out the cash without writing a check: select Create ⨁ and then Transfer.
For Cash Out:
When you give cash to an employee or use petty cash yourself, record it with a slip of paper to track who, when, and what the money was used for. This is like a receipt to track the cash that you take out.
In QuickBooks, record taking cash from petty cash as an Expense with petty cash as the payment account.
I still encourage you reaching out to your accountant. These transactions most crucial process is the account to affect and choose. He/she could guide you which option to take based on your recording practice and business needs.
If you have additional questions, please let me know. I'm here to help you.
Thanks for the reply. The issue we have is the cash is being taken before it’s reached the bank, so say we sell £1000 of food for the day, bank £800 but pay out £200 direct to a supplier for a delivery. I record the sale as 1000 match 800 but what to do to match the missing 200. I also then place the invoice in, so need to match that off too.
Allow me to chime in and help provide some additional information about recording transactions in QuickBooks Online (QBO).
First, I'd like to acknowledge your effort in sharing the detailed information about your concern. In this case, you can record separate transactions for customer and supplier.
You'll need to record or change the invoice amount to £800, then apply the payment using the Receive Paymentfunction with the exact amount of the invoice. For supplier transaction, create a bill for the amount of £200 then use the Pay Bills function to mark the bill as paid.
Doing this will post as money into your current account and money out for your expense account.
If you need further assistance with the steps, I recommend contacting our QuickBooks Online Support Team. They have additional tools to pull up your account and do a screen-sharing.
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