Category for petty cash

Laurie Howard asked 3 months ago

If I write a check to  cash for the petty cash box – how should I post it so that at the end of the month I can split it into various categories of sales

admin Staff replied 3 months ago

If you’re writing a check, it means you’re withdrawing cash from the some operating/checking account. You have a couple of ways to enter this in QBO.
One easy way is to enter directly to the bank register.
Go the bank register (left dashboard > accounting > chart of accounts > select bank account > click view register under action column).
Select Add Check (right below DATE column at the far left).
For Account field, select Petty Cash account (open a new one as bank account type if needed).
Payment = Check amount.

When you’re ready to categorize expenses from the Petty Cash account. go to Expense form (Create “+” plus sign > Vendors > Expense).
Choose a Payee as Vendor type.
Select Petty Cash account from the Bank/Credit account field.
Under the Account column, enter the account category.
Once you save this transaction, this will reduce the Petty Cash balance.

Hope this helps!

Your Answer

11 + 14 =