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Level 1

How do I match up deposits for cash when my client is using daily cash sales towards expenses and only depositing 2 times a week?

 
2 Comments
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Community Champion

How do I match up deposits for cash when my client is using daily cash sales towards expenses and only depositing 2 times a week?

You have to start by changing the bad habits your client is using. It is fine to use collected cash for expenses BUT, they should be paid from bank-type Petty Cash or Cash on Hand- meaning instead of the daily cash sales going who knows where they need to be deposited to Cash on Hand. The twice a week real deposit then is recorded as money movement from Cash on Hand to Checking.

 

The alternative is posting each daily cash sales to Undeposited Funds, then twice per week depositing these less cash back to Cash on Hand from which Expenses have been or will be paid.  This way you run CoH in the negative before deposits and nothing wrong with that just the client will freak when she sees account balances below zero

Highlighted
Level 1

How do I match up deposits for cash when my client is using daily cash sales towards expenses and only depositing 2 times a week?

 Thank you for your help. Just a couple more questions...

How do I post the cash receipts? I was putting them in as Expenses to 'Undeposited Funds' in hopes that I could apply with the cash from Daily Sales to match the Actual bank deposit. BUT that doesn't work I see now. 

IF we have a large 'petty cash' for the owner to use for expenses, how do we replenish Petty Cash without writing a check?

Thank you!!

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