Tracking petty cash expenses

Banking > Tracking petty cash expenses

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 ‘Setting up accounts’ on page 25.

To transfer money to your petty cash account

1	Go to the Accounts command centre and click Transfer Money. The Transfer Money window appears.

2	In the Transfer Money From field, type or select the account from which you are transferring money.

3	In the Transfer Money To field, type or select the petty cash account.

4	Enter the amount you are transferring in the Amount field and click Record.

To allocate expenses to the petty cash account

Let’s assume you spent £10.00 on stationery and £30.00 on postage from your petty cash float. You would record this transaction in the following way.

1	Go to the Banking command centre and click Spend Money.

2	In the Account field, type or select the Petty Cash account.

3	Enter the date and amount of the expense.

4	Enter the expenses as line items and allocate them to the relevant expense account (in this example, the Office Supplies account and the Postage account).

5	Since you do not need to print a cheque for this transaction, select the Cheque Already Printed option.

6	Click Record.