Recording petty cash transactions

Receipts for petty cash expenditures should be kept in the same place the petty cash is kept: under lock and key. If possible, you should enter the petty cash receipts into QuickBooks on a weekly basis. If petty cash is not used that often, monthly should be sufficient. 

Follow these steps to record petty cash transactions:

1. Navigate to the chart of accounts, as we did in the previous section.
2. Click on the View register link to the right of Petty Cash, as shown in the following screenshot:

3. Click on the arrow next to Add check and select Expense, as shown in the following screenshot:

4. Fill in the remaining fields, as shown in the following screenshot:

Explanations of the fields to fill in are as follows:

• DATE: Enter the date of purchase in this field.
• REF NO.: If you have a reference number such as an invoice number or account number, enter it in this field.
• PAYEE: Select the payee from the drop-down menu. If the payee...