Most businesses keep a small amount of cash handy at the office for miscellaneous expenses—postage, staff amenities, and so on. You can track this petty cash amount separately by using a petty cash account, and allocating any miscellaneous expenses to that account.
Check your accounts list for an account named ‘Petty Cash’. If it doesn’t exist, you need to create it. For information on creating an account, see ‘Set up accounts’.
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In the Transfer Money From field, type or select the account from which the funds will be paid.
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In the Transfer Money To field, type or select the petty cash account.
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Enter the amount you are transferring in the Amount field.
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Click Record.
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Let’s assume you spent $90 on stationery and $10 on postage from your petty cash account. You would record this transaction in the following way.
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In the Pay from Account field, select the Petty cash account.
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Enter the transactions as line items and allocate them to the relevant expense account (in this example, the Office Supplies account and the Postage account).
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Since you do not need to print a cheque for this transaction, select the Cheque Already Printed option.
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Click Record.
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