QB Issue Resolution:
Petty cash is a convenient supply of cash that you use to make small cash payments for goods and services. For example, instead of writing a check for $1.50 for postage due, you can pay the postman directly out of your petty cash box.
You should designate one person at your company to control the petty cash box and to keep track of each withdrawal.
Here’s how to control the flow of cash:
Withdraw a lump sum from your checking account and place the cash in a locked cash box in the office. The way you record this will depend upon the manner of withdrawal. If you wrote a check for cash, do the same in QBO and choose Petty Cash as the expense account. If you received the cash without writing a check, you can use Transfer Funds.
When you give cash to an employee, have the person sign a slip of paper to indicate who, when, and what the money was used for. Record this using Cash Expense.
When you need to add more cash to the box, repeat step 1.
At all times, the amounts on the slips of paper and the cash you have left should add up to the amounts you’ve deposited in the box.
You can track these transfers and expenses and reconcile your petty cash account just like any other bank account in QuickBooks Online.
To set up a Petty Cash account:
Choose the Gear Icon > Chart of Accounts.
Click New in the top-right. The New Account interview will appear.
Choose Bank as the type of account.
Choose Cash on Hand as the type of bank account.
Enter the account Name, such as Petty Cash. You can also enter a description.
Enter the Balance and the As of Date. If the account is new, leave the opening balance at “zero.” (The opening balance will be created when you move money from the checking account by writing a check or transferring funds.
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Answer ID 6222
Products QuickBooks Online Simple Start (H)
QuickBooks Online Essentials (H)
QuickBooks Online Plus (H)
Categories Using This Product
Date Created 04/25/2014 05:10 PM
Date Updated 03/17/2015 07:30 PM
Allow Crawling? Yes
Resolution for Issue 'What is Petty Cash? How do I set it up?' available: Yes (Solved).
Source: Intuit Community forum.
What is Petty Cash? How do I set it up?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for Petty
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