Yes, creating a separate account for Cash on Hand in QuickBooks Online (QBO) is a practical solution for your scenario, LCUUF. This is the closest option we have because the Undeposited Funds (UF) account is one of the default accounts in QBO and has a specific function. I'd be glad to detail this to you.
I appreciate your efforts in managing your organization's finances. I'm interested in understanding how the opening balance entry in the UF account was initially recorded. This information will help us provide more accurate guidance on reallocating the funds to the appropriate accounts.
If the entry only shows the actual cash amount in the Cash Box when you started using QuickBooks Online (QBO), consider deleting this incorrect entry. After that, you can accurately re-enter the amount while setting up a Cash on Hand account, which will help you effectively monitor the cash in your Cash Box.
Hereβs how to up a petty cash account:
- Go to the Gear icon, and then select Chart of accounts.
- Select New.
- Choose Bank from the Account type dropdown.
- In the Detail type dropdown, select Cash on hand.
- Enter Petty Cash (or Cash Box) in the Account name field.
- Since you already have money in your cash box, enter the amount in the Starting date and opening balance field and choose the correct as-of date.
- Select Save.
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To move contributions into your bank account, you'll first need to record a bank deposit and post it to your cash box account in QuickBooks Online (QBO). After that, you can transfer the funds from your cash box to your bank account. Since you mentioned that you will be depositing 20 contributions into your bank account, we can edit the deposit suggested to ensure that it's correctly posted to the designated cash box account.
Follow these steps:
- Find the bank deposit entry for the 20 contributions.
- From the Account dropdown menu at the top left corner, select the cash on hand account you created.
- Review the other details, then Save and close.
Next, create a transfer entry from your cash box account to your bank account to indicate that the contributions have been transferred: Transfer funds between accounts.
For managing the cash inflow and outflow of your cash box account in QBO, refer to this article as a guide.: Set up and use petty cash in QuickBooks Online.
Before we wrap up, I suggest you explore QuickBooks Live Bookkeeping to streamline your accounting, maintain precise financial records, and access professional support. This could free up valuable time, allowing you to concentrate on expanding your business.
By following these steps, you should have a clearer structure for managing cash transactions and bank deposits in QuickBooks Online. If you have more questions, feel free to return for assistance. Have a nice day ahead.
