My husband runs a small handyman business. Most of the time he uses cash to purchase materials. He also receives payment for his work in the form of checks. How do I go about recording income and expenses where mostly cash is involved? Is it ok to set up a "cash" bank account and use that? I'm using desktop pro 2016. Thank you.
Thank you. Do I make deposits (income) into this same petty cash account? I'm assuming I wont be able to reconcile the transactions as theres no bank statement to compare to and it will keep a running balance? Thanks again.
Allow me to join this conversation and provide additional information about recording cash expenses in QuickBooks Desktop.
Yes, BRC is correct. You can create a cash account in the Chart of Accounts. It's the same Category type as a bank account, but you can name it Cash on Hand or Petty Cash, anything you would like to use to associate it.
When entering expenses paid by cash, just choose the cash account you created in the Account field beside the Vendor's name. Here's another article for more details: How to enter, edit, or delete expenses.
If you need additional assistance with the process, I'd recommend giving our Customer Care Team a call.