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How to record cash expenses?

 
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Best answer 10-15-2018

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QuickBooks Team

Hello jabessa1958, Thanks for reaching out to Community!...

Hello jabessa1958,

Thanks for reaching out to Community!

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. Here's an article that'll guide you through the process:

https://community.intuit.com/articles/1145793

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:

https://community.intuit.com/articles/1583125

Fill me in if you have further questions.

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QuickBooks Team

Hello jabessa1958, Thanks for reaching out to Community!...

Hello jabessa1958,

Thanks for reaching out to Community!

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. Here's an article that'll guide you through the process:

https://community.intuit.com/articles/1145793

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:

https://community.intuit.com/articles/1583125

Fill me in if you have further questions.

View solution in original post

Community Explorer **

Re: Hello jabessa1958, Thanks for reaching out to Community!...

Thank you VivienJ, I encountered this same question and found this post, it was exactly what I was looking for.

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Re: Hello jabessa1958, Thanks for reaching out to Community!...

Very useful information for people, I think this is what everyone needs.

Not applicable

Re: Hello jabessa1958, Thanks for reaching out to Community!...

Hi

I hope I can follow up on this.  I want my team to record their expenses ongoing throughout the month and then I will use their records to make a bank payment to them.  Could this reconcile in QuickBooks?  Thanks.  Rebecca

Moderator

Re: Hello jabessa1958, Thanks for reaching out to Community!...

Thanks for joining in on the thread, Rebecca.

 

Since the expenses of your team are reimbursable, you might want to set them up as a vendor. You can create individual vendor profiles or one for the whole team. Here's how:

  1. Select Expenses on the left menu and go to the Vendor tab.
  2. Click the New vendor button and set up the profile.
  3. Click Save.

Reimbursements to your team are expenses to your company. You can record the reimbursements as Expense or Bill:

  1. Click the Create menu (+) at the top and select Expense or Bill.
  2. Enter your reimbursement details.
  3. Click Save and close.

If you use Bill, you still need to create a bill payment:

  1. Open the bill and click the Make payment button.
  2. Make sure you choose the correct Bank account.
  3. Mark the bill you want to pay under Outstanding Transactions.
  4. Ensure the AMOUNT PAID is correct.
  5. Click Save and close.

You might want to check out this article on how to your pay pays online: What is Online Bill Pay?.

 

I'd also recommend reaching out to your accountant when recording your team's expenses. They might have a better way of doing this. 

 

After recording your team's expenses, you can already reconcile the account.

 

Feel free to let me know if you have follow-up questions about this. Have a great day!

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Re: Hello jabessa1958, Thanks for reaching out to Community!...

Hi
Thanks so much for this.
 
I understand how to make an expense payment.
 
 
My question is about how employees record their expenses as they go, so that I can reimburse them.
 
So if an employee goes to a shop and pays for something that they pay for with their own cash, when and where should they record this, if I don't reimburse them from the bank account until a month later?
 
And how would they log car travel for example?
 
Can QuickBooks do this?
 
Thanks 
Moderator

Re: Hello jabessa1958, Thanks for reaching out to Community!...

Thanks for getting back and providing detailed information, Rebecca.

 

You can let your employee record his/her expenses by adding him/her as one of the users. The least access rights you can provide is Limited to Vendors. You might want to review this article before adding them: Understanding User Types and Permissions.

 

Take note that if you give this access rights, your employee can also do the following aside from creating bills:

  • create bills for other employees.
  • enter other vendor transactions such as credit card purchases, expenses, checks.
  • view reports related to Account's Payables (A/P).

You can also see what the user can and can't do upon selecting the Limited to Vendors access rights.

 

Here's how to add your employee as a user:

  1. Click the Gear icon in the upper-right corner and select Manage Users.
  2. Go to the Users tab and click the Add user button.
  3. Select Standard user and click Next.
  4. Select Limited to Vendors and click Next.
  5. Set up the Time tracking settings and click Next.
  6. Set up the additional settings and click Next.
  7. Enter the employee's information and click Save.

Once he/she accepts the invitation, he/she can already record the expense as Bills. Then, you'll be the one to record the bill payments.

 

Meanwhile, I'd recommend reaching out to your accountant again on how your employees can record their car travel. They know what's best for you and your books.

 

Let me know if you need anything else.

Experienced Member

Re: Hello jabessa1958, Thanks for reaching out to Community!...

 I have been looking everywhere for information on this topic for Quickbooks Desktop pro. I am wondering how to enter a bill which I paid with personal cash. I created a "cash" bank account, and entered the correct vendor and chose the cash bank account to pay from, however this makes my "cash" bank account a negative of the amount of the bill.  Is this OK?

QuickBooks Team

Re: Hello jabessa1958, Thanks for reaching out to Community!...

Hi there, quinn1.

 

I found a similar post on how to record this type of transaction in QuickBooks Desktop.

 

Let me share this link with you so you can follow the steps given by one of our Established Community Backers: https://quickbooks.intuit.com/learn-support/en-us/banking/business-expense-paid-with-personal-funds/....

 

Don't hesitate to visit us again if you have other questions. 

 

Experienced Member

Re: Hello jabessa1958, Thanks for reaching out to Community!...

The article you provided gave excellent instructions for what I was looking to do. I had a batch of transactions which were paid with personal funds. I recorded each expense into the expense lines on a no-named check, under each expense i entered another line with matched  negative amounts, coming from Owners Equity Contributions account. 

Next, I have a bank feed transaction to categorize, where I transferred this amount into my personal checking account as a reimbursement. Wondering the correct way to do so. I find articles on the topic, but i have a hard time finding any articles related to QB Desktop. I appreciate your time!!

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