Where does a "cash on hand" come from? It is recording transactions which should be recorded in my checking account

Typically you use a sales receipt to receive cash or checks on the spot, across the counter so to speak.  Then you deposit those funds, in checking or cash type bank account

But I didn't set up a "cash on hand" account in Quickbooks -- it just appeared, and then has been transferring my checking account information at my bank to the "cash on hand" account in quickbooks which should be going to my checking account in quickbooks.  Can't understand why and, worse, how to fix it.  

I didn't set up a "cash on hand" account in Quickbooks.  Now it's not only there, but my bank's checking account information is being recorded in this Quickbooks "cash on hand" account instead of my checking account in Quickbooks.  I don't understand how this happened and, worse, how to fix it.  Any help would be appreciated.  

Thanks for helping me navigate to put transactions in the right account.  However, I'm still a confused novice and need further help.

(A) I still have the "cash on hand" account, showing none of the transactions I moved to the right account, but showing a balance that I don't know what to do with.  There is no corresponding account at my bank, so I don't know where the balance is coming from.  I would think I should just find a way to delete it from Quickbooks, but don't know how to do that.

(B) In moving transactions to my Checking Account, I had to "unmatch" most of them going back to January 2020.  I believe I should go back and re-reconcile the months going back to the beginning of 2020, but I don't know how to do that.

I may be trying your patience, but appreciate your help immensely.  

Thanks for getting back to us and for sharing some clarification, @4miracat.

I’m more than happy to help and guide you on how to delete your “cash on hand” account in QuickBooks Online (QBO). Before we get started, I recommend working with your accountant for additional guidance. This way, we can ensure your book is well accounted for after deleting the account.

If you’re not affiliated with one, you can visit our ProAdvisor page and we'll help you look for one from there. Once ready, you can now proceed with the steps below:

1. Go to the Accounting menu.
2. Select Chart of Accounts.
3. Locate your cash on hand account.
4. Click the Action drop-down menu and select Make inactive.

You can also refer to this article for more details: Delete an account on your chart of accounts in QuickBooks Online.

In regards to reconciling your checking account, you can utilize this link that can walk you through the process efficiently: Learn the reconcile workflow in QuickBooks.

I’m also adding this resource that you use for guidance in case you need to merge two accounts in your QBO account: Merge duplicate accounts, customers, and vendors in QuickBooks Online.

Know that I’ll be around if you have any other questions about managing your accounts or with your QBO. I’ll be around ready to back you up. Have a good one.

How do I know which accounts are Cash on hand

Thank you for reaching out to us, dk52.

I'll be glad to help you with your Cash on hand concern.

You'll be able to identify which accounts are Cash on hand by searching Chart of Accounts. Type "Cash On hand", then you'd see the accounts there.  You can also run the Account List report then check the detail types.

To determine which accounts are Cash on hand.

Here's how:

1. Choose Accounting.
2. Click Chart of Accounts.
3. Locate the Cash on Hand account from the list of your accounts.
4. Type Cash on hand, from there you can view the account.

You can also check on this article: Delete an account on your chart of accounts in QuickBooks Online for more information about Cash on hand.

I’m also adding this resource that you can use in case if you want to Import: Import your chart of accounts to QuickBooks Online. 

We're always here in the Community to help if you have other questions related to Cash on Hand in QuickBooks. Stay safe!

On this topic, I realized I've been recording payroll from "Cash on Hand" instead of from our bank account. How do I change previous payroll runs from "cash on hand" to "bank account" ? The cash on hand account is now showing negative. 

Happy to help, @PWSSalt.

I know how to transfer the previous payroll to the correct bank account. This way, the negative cash-on-hand balance will resolve as soon as possible. 

Currently, transferring paychecks directly to another bank account is unavailable. To ensure that the amounts are correct, run a payroll report (Payroll Summary, Payroll Summary by Employee, or Payroll Details). As a workaround, manually enter the payroll checks as journal entries so you can reconcile the account. You can combine all employees' pay totals into a single journal entry or create a separate transaction for each employee.

Go as follows. 

1. Go to the + New on the upper left side. 
2. Choose Journal Entry.
3. Enter the paycheck date in the Journal date field.

For more information on how to enter the debits and credits for wages and taxes, as well as a sample paycheck, please see the following article: Manually enter payroll paychecks in QuickBooks Online.

In addition, to ensure the accuracy of your books, I would recommend consulting an accountant on which specific accounts to use to record the transaction.

To avoid this happening again, ensure the bank account in the payroll settings is correct. This way, your future payroll is directly recorded in the right bank. To check, follow the steps below: 

1. Go to the Gear icon and choose Payroll settings. 
2. In the Accounting section, click the pencil icon. 
3. Review your bank account in the Paycheck and payroll tax payments section. 
4. Hit Done. 

For more information, see this link: Change your payroll bank account.

We also have these additional articles to share with you in case you need more references in the future:

• Reverse Or Delete A Journal Entry In QuickBooks Online 
• Print A Journal Entry Report 

Please know that you can always start a new topic or reply to this thread if you have further questions or require anything else. We are available to answer any QuickBooks questions you may have at any time.

I am having a problem with cash on hand also.  I was able to go in and change each entry back to our checking account for most of the transactions.  However, there are four that are still an issue.  All four are sales tax payments made to the state.  When I click on the entries to edit, I get a screen that says "Sales tax payment" with information like amount, date, etc listed under.  It gives me only two options - to either print or delete.  How can I correct these so they are in my checking account and not creating a negative balance in the cash on hand that I don't remember creating?

Hello there, @kaiglerg.

I understand your confusion with this and I want to make sure this is well taken care of. Let's go ahead and sort this out.

Since you mentioned that you didn't remember creating these sales tax payments, I suggest checking your audit log to check if this is something created by other users.

On the other hand, since you only have the option to print or delete, let's delete those sales tax payment transactions. Make sure to take note of the details first before deleting them since we will be recreating those and putting them into the correct account. 

Note: Before deleting these transactions, I highly recommend consulting your accountant first for your sales tax reports not to be messed up. If you don't have an accountant, you can find one through this page: Find a ProAdvisor.

Once deleted, let's recreate them. Here's how:

1. Go to Taxes, then select Sales tax.
2. From the Sales Tax Owed list, select the tax agency you're recording the payment for, then select Record Tax Payment.
3. From the Bank Account dropdown, select the account you're making the payment from.
4. Select the Payment Date.
5. Enter the tax payment amount in the Tax Payment field.
6. When you're ready, select Record Tax Payment.

Additionally, should you need to view certain reports with the details that matter the most to you, feel free to browse through this article: Customize reports in QuickBooks Online. 

You can always post again if you have any clarifications about managing your transactions. I'm always here to help. Have a great day!