How to Set Up and Manage Petty Cash in QuickBooks Online | Bookkeeping Help

This article supplements our bookkeeping and accounting blog post on the same topic which you can read here:
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[@christianrooversmusic]

Great video. Perfect level of detail and very precise steps. This helped a lot.

[@szwedaconsulting]

We're glad it helped you! If there are other topics you'd love to see explained let us know for future videos.

[@nuriecarelse4531]

Hi Thank you for the petty cash tutorial..could you perhaps on another tutorial show / explain how to record expenses when a debit card eas used ie..refreshments for office meetings..i hope this question makes sense

[@szwedaconsulting]

Thanks for your suggestion for a new video; we're always looking for ideas. Ultimately though, you record debit card purchases the same way you would record any other expense drawn on the checking account whether with check, ACH, debit card, etc.... If you'd like a personalized 1-1 review of your QuickBooks account feel free to message us via our website as we offer both QB Diagnostics and QB Training customized to your needs. All the best!

[@carriejardin6820]

Thank you for this useful video! I setup a CASH account in QuickBooks Online last year (2020) and recorded 2 entries that are still showing on the Balance Sheet as a negative. Do you have any advice of how to close out to zero so the Balance Sheet is current for 2021? My idea is to add a Journal Entry - Credit Owner's Equity as a 50/50 split between the 2-Owners/Partnership and Debit CASH.

[@szwedaconsulting]

Hi Carrie. We're glad you found the video useful! I'd first investigate what the other side of the two entries causing the account to go negative are. For petty cash to be negative something had to credit cash and debit another account. I'd guess it's an expense account. If so you could make a JE dated in 2021 to debit cash as you mentioned and then credit whatever the originally used account was (e.g., office supplies) to effectively reverse the transaction.

[@carriejardin6820]

@@szwedaconsulting Thank you! Appreciate your response. There are times as a Bookkeeper, that I seem to over think the solution and so I value these small issues. The 2 CASH items were indeed expenses and so I did a JE as you described and offset them back to the original 2 expense types used.

[@nuriecarelse4531]

Thank you for your tutorial .i have two questions... can i enter all the petty cash expenses for the month and then reconcile all afterwards ? Also is it correct that the pertycash expenses won't show in the bank reconciliation , but the cash withdrawal to fund the petty cash would . Thank you

[@szwedaconsulting]

Hi Nurie, thanks for your question. Yes, the process is to enter all the petty cash expenses (as they happen or all at once for the month) and then reconcile the petty cash account. It is correct that the petty cash expenses will not show in the checking account bank reconciliation as they are not expenses drawn on that account. The cash withdrawal from checking to fund the petty cash account will show in the checking account register. The petty cash expenses will show in the petty cash register. Hope that helped!

[@nuriecarelse4531]

@@szwedaconsulting thank you so much. That helps knowing im im on the right track

[@ube-23s]

Thank you, How does this petty cash of $100.00 and $5.00 Expenses show in Cash Disbursement Journal and Bank reconciliation.

[@szwedaconsulting]

Hello Abraha. Thanks for your question. The $5.00 expense would show in QuickBooks in the Petty Cash Register which is the closest thing to a Cash Disbursement Journal. (The $100 funding would show there too, though a report could be run to eliminate debit items). You can see what this register looks like around minute 9:57 in the video.
As for the bank reconciliation, expenses paid for with petty cash don’t show up in the checking account bank reconciliation. However you can reconcile them in the same manner if you reconcile the petty cash account as shown in the video. The $100 would show in both the checking account and petty cash account register and bank reconciliations. The $100 was a debit to the petty cash account and a credit to the checking account in our video example.
If you have any more questions or would like a personalized consultation of your QuickBooks' petty cash account please reach out on our site. Thanks for following.

[@ube-23s]

@@szwedaconsulting Thank you again. That is what I was not sure. ""Expenses paid for with petty cash don’t show up in the checking account bank reconciliation.""
If they do show up, It is like entering twice.(Wrong). Thank you for making It clear. God Bless you.