whats the easiest way to set up a petty cash account?

Hello there, RevDenise.

I'm here to share the step on how you can easily set up a petty cash account in QuickBooks Online (QBO).

This can be done by going to the Chart of Accounts (COA). Here's how:

1. Go to the Gear (settings) icon at the top right.
2. Select Chart of accounts.
3. Tick New.
4. Depending on your account view, you’ll either see a panel labeled New account or New category.

If you have the New account panel:

1. Click the Save account under dropdown and choose Bank Accounts.
2. In the Tax form section dropdown, pick Cash on hand.
3. Enter Petty Cash in the Account name field.
4. 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 Starting date and opening balance field and choose the as of date.
5. Hit Save.

If you have the New category panel:

1. Enter Petty cash for the Category name.
2. Click Select category, then select Bank & credit cards.
3. Tick Select.
4. From the Account type dropdown, choose Cash on hand.
5. 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 Starting date and opening balance field and choose the as of date.
6. Hit Save.

To know more about how you can manage your petty cash in QBO, check out this article: Set up and use petty cash in QuickBooks Online.

It’s a good idea to reconcile your petty cash account regularly. Once you do, you can move your paper slips to your long-term recordkeeping, because the transactions are in QBO.

You can refer to this article for future reference: Reconcile an account in QuickBooks Online.

Please let me know if you have follow-up questions about this or anything else. I'm always here to assist. Take care.

I do NOT want to link any of our bank accounts to the online version of Quickbooks, so I need help learning how to reconcile those accounts the old fashioned way! Surely there must be a way to do it, since Petty Cash accounts are not linked to a bank. Please advise.

I appreciate your choice to manually reconcile your accounts rather than linking them to QuickBooks Online (QBO), Katalina. To do this, you will need to print your bank statement so that you can compare it with the transactions recorded in QuickBooks. I'll guide you through the process.

When reconciling accounts in QuickBooks Online (QBO), use your bank statement for reference. Compare the transactions on your statement with those in QuickBooks to ensure accuracy. Check the dates and details to make sure they match up. This process ensures your QuickBooks records align with your bank statement.

It's common when you occasionally miss something. If you discover a mistake during reconciliation, you can refer to this guide: Learn the reconcile workflow in QuickBooks.

Don't worry if your ending balances don't match. Here's an article that will help you identify and resolve discrepancies, enabling you to complete your reconciliation: Fix issues at the end of a reconciliation in QuickBooks Online.

If you're looking for some assistance with reconciling your account, connecting with a QuickBooks Live Bookkeeping Service might be beneficial. They are ready to help you to make sure you feel confident and that everything is properly organized.

Remember, you're not alone in this journey. Feel free to get in touch with any questions or if you need further help managing your reconciliation. We're here to support you every step of the way.