Manage Your Petty Cash Account

Manage a Petty Cash Account

To set up a petty cash account:

1. Add an operating bank account. In the Bank Name and Account Name fields, enter Petty Cash.
2. Add a deposit transaction to post your opening balance.
   • From the Type field’s drop-down, click Adjustment In.
   • In the From field, enter your firm’s name.
   • From the Account field’s drop-down, click 3100: Opening Balance Equity.
3. Enter withdrawal transactions to record your expenses.
   • From the Type field’s drop-down, click Adjustment Out.
   • In the To field, enter the recipient’s name.
   • From the Account field’s drop-down, click the appropriate COA.
4. Properly record future contributions when you replenish the account.
   • Use the Internal Bank to Bank Transfer tool when transferring funds from your operating account.
   • Posted adjustments for contributions and replenishment to Account 2550: Internal Bank Transfer. If you use the Bank-to-Bank Transfer tool, this will happen automatically.
5. Reconcile your account.