You can create a petty cash account to manage your petty cash transactions and perform account reconciliations.

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.