We use QB desktop.
We have a Petty Cash account with an amount of money in it that doesn't really exist except on paper. That is, there really is no Petty Cash drawer, envelope, etc. This account is an artifact that we'd like to get rid of.
How do I delete the account? There isn't going to be any cash hanging around to deposit into checking. But I need to account for the change in an asset.
It's my pleasure to help you manage a petty cash account in QuickBooks Desktop, @KathieICF1.
To start, let's move the money from petty cash to asset account through transfer funds. Let me show you how:
Then, delete the petty cash account.
For more information, please see this article: Add, edit, or delete accounts in QuickBooks Desktop. This will guide you manage your accounts in QuickBooks.
In case, you'll want to settle your accounts in QuickBooks, feel free to check this article for the details: Reconcile an account in QuickBooks Desktop.
Feel free to post again if you need further assistance. I'm always here to help. Have a great day.
Hope you’re doing great. I wanted to see how everything is going about the petty cash account concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you anytime.
Looking forward to your reply. Have a pleasant day ahead!
Thank you for this overview. I understand these steps. But once I have "transferred" the Petty Cash to Checking, there will be an issue because there really won't be any actual cash deposited.
What's the best way to account for this difference? I can do a Reconcilation Adjustment easily enough. Am I overthinking this issue and maybe I don't need to worry too much?
I have this exact same issue with a pesty $25.00 in a petty cash line that doesn't really exist. When I follow the steps indicated in the above answer, I have the issue with the checking account being off by that much because the money doesn't really exist.
Good day, JanJaw.
If your checking account is being off, you can create a Transfer funds transaction to fix the amount. You can follow Rubielyn_J's instructions on how to Transfer funds.
I also suggest consulting with you accountant to help you handle this situation.
If you've tried all the possible steps to fix your issue, the best thing to do here is to contact our Customer Care Team. This requires a thorough investigation from our technical support so they can work on this in a secure environment as well.
Please take note that our support hours for QuickBooks Desktop Pro, Premier, and Plus start from M-F 6 AM to 6 PM. For QuickBooks Desktop Enterprise, we're available any time, any day.
You can also get our direct phone number on this link: Contact QuickBooks Desktop support.
Please let me know if you have any other questions or if you're referring to something else. I'll be waiting for your response and will help you from there.
If you don't have one set up, create an expense account called "Cash Over/Short". Then, create a journal entry: debit Cash Over/Short and credit Petty Cash for $25.00. Make a note that it was to close out the account. The reality is you are, in fact, short that cash.