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Many businesses that use QuickBooks have created Petty Cash in QuickBooks. There are day-to-day expenses that you pay in cash and on an immediate basis. So, for that, you need to maintain a petty cash account. It’s easy for you then to make payment. These payments are not very big, you don’t need to pay them through check or card as they are not recorded in the Balance Sheet. Whether you are maintaining a petty cash account or don’t know how to record petty cash in QuickBooks, then we are here to enlighten you with every piece of information you must know. Let’s start.
Petty cash is maintained by small and big size companies, to make little payments. So, businesses maintain the account to keep the fund in it. You can create a petty cash account to record the transactions that are made with cash. These transactions can be recorded by the user and it will make your work easy. They are generally your day-to-day expenses like stationery, stamps, postage, etc. If you want to set up this account in QBs Online then you just need to click on the Cash on Hand option.
Few are the benefits of maintaining petty cash in QuickBooks:
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Here are the steps that you should follow how to set up petty cash in QuickBooks:
Follow the instructions to record petty cash transactions in QBs online:
Go through the procedure carefully to reconcile petty cash:
We have explained all the information about Petty Cash and what is the importance of it in QuickBooks. You can use it to maintain a record of expenses. And, also highlighted the steps of how to record petty cash in QuickBooks and in QBs Online in detail to monitor you in the best way. We will be more than happy if you contact us for any further information.
Answer – Petty cash is considered a Current Asset and you need to mention it on the debit side of the balance sheet.
Answer – No, it is not an expense but you should place it in the Balance sheet with Cash on Hand or Bank.