I have a bank account that I use for my business. How do I add a petty cash account to the same bank account?
I have a bank account that I use for my business. How do I add a petty cash account to the same bank account?
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ajn1XYVder3QjyacfA8pyY
10/18/09 2:56pm PDT
Viewed by asker 10/30/09 10:32am PDT
Viewed by asker 10/30/09 10:32am PDT
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2 Replies
10/23/09 4:35am PDT
OK, I finally figured this one out on my own. All of the other Petty Cash solutions were correct up to a final point. You do set up this account as a Bank account. However, you must leave the routing number and account number blank. I thought that since the Petty Cash account would only be used by my Chase bank checking account, I needed to put the Chase bank routing number and bank account number in. My mistake although I do think it would be a great idea to to have Petty Cash accounts assigned to certain checking accounts.
10/30/09 10:06am PDT
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The solution
I have done this a couple of ways. One way is that each time you withdraw cash from your bank account (that is already set up in QB) is that you record this is the bank account register. Assign the use of this cash withdrawal to the appropriate accounts - such as parking, tolls, meals - whatever the petty cash was used for.
the other way is to set up a separate bank account named petty cash. No need for account number here. Write a check from your main checking account and in QB book a deposit to petty cash. Essentially this petty cash account represents the cash you have sitting wherever you keep it - a safe, a locked drawer, or on hand when you travel. If you are going to store cash somewhere I highly recommend that you are disciplined and save receipts and reconcile the account monthly with these receipts.
