I need to record a cash payment to 2 of my vendors. I created a bill originally and paid both vendors with cash. I am not sure how I record the withdrawal (which was to pay 2 separate vendors, $2400 total withdrawal and then record the payment towards the existing bills to each vendor.
Thanks
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You have a Petty Cash account? No? You should have some named cash bank type account to account for cash on hand, cash drawer, cash in your wallet that belongs to business - whatever you want to call it.
Make a transfer from checking to cash of $2400. As a transfer or check or deposit does not matter as long as you record the withdrawal of cash from one bank account into your "cash on hand" bank type account.
Then in Pay Bills, select the cash account as the bank account to pay the vendor bills from.
You can use this same account when you buy something for business with your own money. Spend from Cash, then replenish it from your Owner Equity Contribution account
You have a Petty Cash account? No? You should have some named cash bank type account to account for cash on hand, cash drawer, cash in your wallet that belongs to business - whatever you want to call it.
Make a transfer from checking to cash of $2400. As a transfer or check or deposit does not matter as long as you record the withdrawal of cash from one bank account into your "cash on hand" bank type account.
Then in Pay Bills, select the cash account as the bank account to pay the vendor bills from.
You can use this same account when you buy something for business with your own money. Spend from Cash, then replenish it from your Owner Equity Contribution account
When you say make a transfer from checking to cash, if using Desktop Pro, is this the same as making a deposit from cash to checking?
Thanks for joining this thread, @quinn1. Yes, it's the same as depositing cash to checking using a Desktop Pro version of QuickBooks.
For future reference, you can check out our help article: Record and make Bank Deposits in QuickBooks Desktop. It also guides you on how you can combine multiple transactions into a single record in QB Desktop to match with your real-life bank deposits.
Let me know if you have more questions. We're always delighted to help. Have a nice day ahead.
Great, I appreciate your help, and thank you for the article links.
My question now is related to this topic.
Single member LLC. I paid some expenses with my personal credit card. To record these purchases, do I do the same as above, and create a separate bank account with another title? Am I understanding this correctly. Thank you for your time!!
Thank you for posting here in the Community, quinn1.
I suggest using the Journal Entry feature in recording the business expense paid using your non-business related credit card. However, it's recommended consulting an accountant for expert advice on the accounts to use during the process.
Here are the steps:
Check out this screenshot for your visual guide:
If you need the steps on how to record the expenditure reimbursement, please refer to the instructions below:
To learn more about creating General Journal Entries, I recommend the following article:
Create a journal entry in QuickBooks Desktop.
Please let me know if you encounter any other issues following the process in the comment section below. The Community is committed to your success.