Setting up a Cash Account in QBDT

I'm glad to see you in the Community, victoriah1956.

Tracking your business expenses and assigning them to the appropriate account is vital for maintaining accurate financial records. Let's go to the Chart of Accounts page to set up the cash account.

Here's how:

1. In your company file, click the Lists menu at the top bar and choose Chart of Accounts.
2. Click the Account drop-down and select New to see more options.
3. Tick the Bank radio button and click Continue to proceed.
4. Enter account information in the fields.
5. Click Save & Close. 
   
   

Now that we've added the cash account, you can use it to track business expenses, similar to the checking account. You can go over this article for more insights about managing accounts in the desktop program: Add, edit, or delete accounts in QuickBooks Desktop.

Moreover, these resources will guide you on how to generate reports for various accounting methods and provide a comprehensive explanation for each category type:

• Work with the chart of accounts in QuickBooks Desktop
• Differentiate Cash and Accrual basis

Feel free to reach out to me again if you have any further questions about adding accounts to the chart of accounts or any other product-related concerns. I'm always ready to assist you. Wishing you continued success in your business, victoriah1956.

Rasa-LilaM:

Thanks for your reply to my question.  I resolved the issue before your reply on my own, however.

this is what I did:  In the COA, I added a new BANK account called CASH Clearing Account.  (the definition for which I added "Used to record cash purchases for necessary job items/supplies."

I record any/all CASH transactions in this account.  I funded the account with Owner's Equity/Owner's Contributions Funds.   

VictoriaH1956