Managing petty cash
Petty cash is a small amount of money that’s used to cover incidentals such as postage, lunch for the office, or other items. Petty cash is generally no more than $500 and is kept under lock and key and managed by the business owner or someone designated by the owner. Like all business expenses, you need to keep track of all your receipts so that you can record the expenses in QuickBooks.
In this section, we will discuss how to track petty cash, record petty cash expenses, and reconcile the petty cash account. Let’s get started by creating a petty cash account.
Adding a petty cash account in QuickBooks
In order to track petty cash in QuickBooks, we need to add a petty cash account to the chart of accounts.
Follow these steps to add a petty cash account:
- Navigate to Transactions, as shown in Figure 16.6:
Figure 16.6: Navigating to Chart of accounts
- Select Chart of accounts and then click the New button...
