To track your petty cash transactions in QuickBooks, you need to set up a
petty cash account.
Note: If your company is a cash-based business, such
as a retail store, you use a cash drawer to collect money and give change to
customers. In most retail businesses, the base amount in the cash drawer is
used for petty cash transactions. If this is how you handle petty cash in your
business, then you do not need to set up a separate petty cash account.
To do this task
Open the New Account window.
Go to the Lists menu and click Chart of Accounts.
Click Account at the bottom of the list and then click New.
Important: You need to use only a few of the New Account
fields to set up a petty cash account.
Why do I need to use "Bank" as the account type?
By using a "Bank" account type, your petty cash or cash drawer account appears
at the top of both your chart of accounts list and your balance sheet reports,
along with the other accounts where money moves in and out (for example, your checking account).
In the Account field, enter the account name, such as Petty Cash.
Leave the Opening Balance at zero, and leave the current date in the "as of" field.
The opening balance
will be recorded later when you put money into your petty cash account. If you've already funded the account, enter the opening balance amount and the date that you put the money into the drawer.
Click Save & Close.
About petty cash
Put money into petty cash
Record petty cash expenses