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Level 1

Petty Cash

I operate a restaurant. We have various suppliers that only take cash payments on delivery. 

I record my sales gross weekly (split for vat) and then have card, cash and petty cash to balance off against the sales. 

I want to know the best way to enter the petty cash. I have an invoice for the majority of petty cash items that i enter in as a supplier

Id like to once a month enter all my petty cash transactions (if i spread sheet these is can it be done automatically) and then pay off suppliers and expense some of these too.

 

any help appreciated 

3 REPLIES 3
QuickBooks Team

Re: Petty Cash

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.

  1. Go to Gear (Settings) icon and select Chart of Accounts.
  2. Select New.
  3. From the Account Type drop-down, choose Bank.
  4. From the Detail Type drop-down, choose Cash on hand.
  5. Enter Petty Cash for the account name.
  6. 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.
  7. 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.

Level 1

Re: Petty Cash

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. 

QuickBooks Team

Re: Petty Cash

Hi there, @Ade23.

 

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 Payment function 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. 

 

Here's how to contact our customer support:

  1. Sign in to your QuickBooks Online company.
  2. Select Help (?) at the top right.
  3. Select Contact Us to connect with a live support agent.

That should do it! Feel free to leave a comment below if you have any other questions about recording transactions in QBO. I'll be around to help. Have a good one.