Closing petty cash acc

I appreciate the opportunity to address the matter of closing your petty cash bank account in QuickBooks Online (QBO), JP1999.

Before closing a petty cash account, make sure its balance is zero. If there's still money in the account, QuickBooks Online will automatically adjust the balance to zero by recording an entry in the Opening Balance Equity account. This may affect tax reporting accuracy. When you're ready to make an account inactive, follow these steps:

1. Go to Settings ⚙ and select Chart of accounts.
2. Find the account you want to delete.
3. Select the Action ▼ dropdown and select Make inactive.

For a comprehensive understanding of the cancellation process, I highly recommend consulting the article titled Make an account inactive on your chart of accounts in QuickBooks Online. This resource offers a detailed list of procedures for rendering accounts inactive rather than deleting them, ensuring continued access to past transaction data for reporting purposes.

Furthermore, I strongly advise seeking guidance from your accountant to guarantee the accuracy of your financial records and prevent data discrepancies. They can also provide recommendations for selecting the appropriate accounts and offer alternative methods for recording this information.

Additionally, the following articles serve as valuable resources for account reconciliation in QuickBooks Online:

• Reconcile an account in QuickBooks Online
• Fix issues for accounts you've reconciled in the past in QuickBooks Online

Should you encounter any additional challenges with QBO, please do not hesitate to share them. I am more than willing to assist. I eagerly await your response and wish you a productive day!

@JP1999 

Have them record an expense transaction for $4.00 and assign it to an expense account.  $4.00 is immaterial so the expense account is unimportant.  Then, make the account inactive.