Quickbooks Tutorial - How to Use a Quickbooks Petty Cash Account

[@QbuniversityOrg]

Feel free to leave a comment or question here!

[@chix25]

How do you record petty cash replenishment?

[@QbuniversityOrg]

@@chix25 it’s the same way as when you first set it up

[@user-kx1rp6tr3z]

Hi! After transferring funds from Checking to Petty Cash account, is it correct to record the receipts from the Enter Bills against employee name to get paid from the reimbursement and make the payment applied to Pay Bills under the Petty Cash account? Or it should be recorded as expenses to the Write Checks under Petty Cash account. Thank you.

[@jw4111]

Worked great - thanks!

[@QbuniversityOrg]

You’re welcome!

[@jenerousnasaasira2322]

Thanks a bunch, you were very helpful

[@QbuniversityOrg]

You’re welcome!

[@fineur1]

In order to maintain the 500.00 petty cash monthly do I just transfer out of cash in bank to Petty cash the months expenses? I am SOOOOO new to petty cash use and even quickbooks itself. What I had worked out in setting up account and recording usage, you verified I did right, I just confirmation on replenishing Petty cash.

[@perfectfitalterationssewin4324]

Very helpful, thank you.

[@QbuniversityOrg]

Welcome!

[@Keeperofloveys6]

Great video, up until bot explaining the reconciliation of those receipts?

[@QbuniversityOrg]

Bot?

[@Tamjeepster]

How do i replenish petty cash?

[@QbuniversityOrg]

Take money from the checking and put it in there. You could write a check and code it to the Petty Cash account

[@ellenwinter9591]

How to create GST reports and file to government. I m in CA. Thank you

[@QbuniversityOrg]

Please search for sales tax videos on my channel for this topic

[@user-hd6cz2xz2n]

I need to close the petty cash account. Will not be using how do I do that?

[@QbuniversityOrg]

Do a journal entry to zero it out. The accounts in the entry depend on if there is a balance in it or any actual cash in it

[@c.7572]

When withdrawing cash from the ATM, is it possible to account that as Owners draw instead of petty cash?

[@QbuniversityOrg]

Yeah you can do that!

[@c.7572]

@@QbuniversityOrg thank you for clarifying it!

[@QbuniversityOrg]

@@c.7572 welcome!

[@c.7572]

@@QbuniversityOrg I’m trying to wrap this around my head. For the situation I mentioned above to use owners draw instead of petty cash, when I create a petty cash account (to use as payee) in the chart of accounts, is it still considered a bank or equity for owners draw?

[@QbuniversityOrg]

@@c.7572 petty cash is set up as a bank account. It is for a small amount of cash kept on hand for small expenses that come up like postage

[@georgesologuren8535]

I'm sorry, I don't agree. When Dan gets the 20 dollars he gets an IOU and a duplicate goes in the lock box. Balance is maintained. When Dan comes back from Staples the bookkeeper is responsible for reconciling that the receipt and change equal to 20 dollars. You put the change back in till along with the receipt and tear up the IOU. Balance is maintained. When the funds run low you reconcile petty cash to make sure receipts, IOU's and cash always equal the same balance (imprest system) and then replenish petty cash with a check from operating account in the amount of the receipts which you code to account for each individual receipt. Balance is maintained. Net income is off only as much as petty cash balance and actual lock box balance differ which is immateriality; any IOU in the lock box are cash equivalent so they don't count. Periodically, someone count the petty cash lock box . This is done unannounced and randomly by someone other the the person who handles petty cash. That is most important because if an employee is going to make an unauthorized loan to themselves its very easy with petty cash. If this policy is know and followed there would be no temptation for that. Hope that helps.

[@dawnscheetz5774]

Hey Matt, I went to the bank and withdrew $100.00 for Petty Cash how do I record that?

[@QbuniversityOrg]

Create a Petty Cash bank account then do a transfer in QB from checking to Petty Cash

[@dawnscheetz5774]

@@QbuniversityOrg Thank you! That is what I thought but wanted to be sure.

[@QbuniversityOrg]

@@dawnscheetz5774 you’re welcome!