I'm a bit behind on my books for 2020, and going back in time I made a mistake of depositing some of a cash payment into my personal checking account, I then just x-ferred it over to the LLC Checking but that has now been a mess trying to show the paper trail.
Verbally told customer their bill, they quickly paid me the same day in cash. I then saw our LLC Checking was low so I deposited some of the cash payment from customer to personal dda, an error, but corrected by just transferring those funds to the llc from my personal account. I then just stuck the rest of the cash into a 'petty fund' envelope inside the LLC safe.
Now I am going back over books and did not have the petty cash account at that time in QB Desktop. So I made a Petty Cash bank account, and decided it would be cleaner to just delete my xfer from personal to LLC and instead just show that the cash went straight to the LLC account. So I did receive payment for invoice, paid in full via cash, then when I went to record deposit it says account from: undeposited funds. So I chose to use that option at the bottom to choose 'cash back' and sent the amount NOT deposited in checking to Petty Cash. It now shows the amount I deposited to LLC DDA as correct and my petty cash account has the rest of the balance. Is there anything I did wrong here? Is there a better way?
