cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
NEW Connect to DBS IDEAL direct bank feeds Click here
louis-rightwayco
Level 1

What accounting process to follow When withdrawing cash from an atm.

 
1 Comment 1
MichelleBh
Moderator

What accounting process to follow When withdrawing cash from an atm.

I'm here to help you on how to manage your withdrawn money, @louis-rightwayco.

 

I'll make sure that you're aware of the type of accounting process you use for your withdrawals. Here are some ways on how to handle cash funds in your QuickBooks Online account.

 

This will depend on the purpose of the funds withdrawn. If it's for business, you can create a Petty Cash Account to manage this. I'll show you how: 

 

  1. Go to the Gear icon, then choose Chart of Accounts
  2. Select New on the upper right side. 
  3. In the Account Type field, pick Cash and Cash equivalents.
  4. From the Detail Type drop-down ▼, choose Cash on hand.
  5. Type Petty Cash in the Name field. 
  6. Enter the amount in the Balance field and choose the as of date.
  7. Click Save and close.

petty cash.PNG

 

Then, transfer the withdrawn money to your petty cash account. Follow the instructions below:

 

  1. Select the Plus icon on the top left. 
  2. Choose the Transfer tab. 
  3. From the Transfer Funds From the drop-down list, select the bank account that the money is coming from.
  4. From the Transfer Funds To drop-down list, select the bank account that the money is going to.
  5. Enter the Amount and Date in the field. 
  6. Click Save and close

 

For more details, check out this article: Set up and use petty cash.

 

If it's for personal funds, I'd recommend creating a Cheques or Expenses to record your cash withdrawals in QuickBooks. 

 

Here's how: 

  1. Go to the New icon, then choose the appropriate form. 
  2. Choose the Payee and Bank Account used to withdraw the money. 
  3. In the Account column, pick Owner's Equity or Partner Equity. Click Add if there are no such accounts yet. 
  4. Enter the withdrawn amount in the field. 
  5. Complete the necessary fields and tap Save and close

 

For additional information, check out this link: Pay for personal expenses from a business credit card or bank account.

 

Feel free to visit these articles below on how to reconcile accounts and also reimburse personal funds in QuickBooks:

 

 

If there's anything else that you need help with, just let me know. I'd be more than happy to assist you further. Take care always, @louis-rightwayco.