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  • Setting up petty cash

This information applies to MYOB AccountRight version 19. For later versions, see our help centre.




Do you have petty cash that you use for small purchases like stamps, stationery or cupcakes for the team? There's many ways to manage petty cash, you could set a limit (such as $200) and replenish on a date each month, or just slip in $20 whenever the cupboards look bare. Regardless of your approach, you manage petty cash purchases similarly to a bank account: you deposit money into a petty cash account, record expenses against it and top it up with a transfer from another bank account (which could be an ATM withdrawal).

By default, your accounts list should have a petty cash account. Check your accounts list (Accounts > Accounts List) and, if you don't have one, set one up as described below.


1. Set up a petty cash account
  1. Go to the Accounts command centre and click Account List.
  2. Click the Asset tab.
  3. Click New.
  4. Select Bank in the Account Type drop-down menu.
  5. Give the account a unique number that suits your account list.
  6. Name the account Petty Cash.
  7. Click OK.

Here's our example:

2. Enter the petty cash opening balance

Petty cash is usually started with money withdrawn from a savings account. You might withdraw funds from an ATM or over the counter. You then record this opening balance with a Spend Money transaction.

  1. Go to the Banking command centre and click Spend Money.
  2. Select the Pay From Account option and select the bank account the funds were drawn .
  3. Enter details such as date and amount.
  4. In the Acct No. field in the lower part of the window, select your petty cash account.
  5. Select the N-T Tax/GST code.
  6. Click Record.

Here's our example:

3. Record a petty cash purchase

You record petty cash purchases in the same way as other Spend Money transactions, just use the Petty Cash account rather than your bank account.

  1. Go to the Banking command centre and click Spend Money.
  2. Select the Pay From Account option and select the petty cash account.
  3. Enter the date and amount, and any other details you need.
  4. In the Acct No. field, enter the expense account.
  5. In the Amount field, enter the purchase amount.
  6. Apply the relevant Tax/GST Code and click Record.

Here's our example:

4. Reconcile the petty cash account (optional)

From time to time, you may want to reconcile your petty cash account to make sure it balances with your cash receipts. It also provides you with the reimbursement amount.

  1. Go to the Banking command centre and click Reconcile Accounts.
  2. In the Account field, select the petty cash account.
  3. in the Bank Statement Date field, enter the current date.
  4. Match the payments in the Reconcile Accounts window with your cash receipts, marking the corresponding transactions off as cleared. You'll also need to reconcile the reimbursement deposit which you can check against your banking records.
  5. Enter the physical cash balance of your petty cash in the Closing Statement Balance field.
  6. If the Out of Balance shows $0.00, click Reconcile. If there's an Out of Balance amount and you're having trouble reconciling, see Out of balance bank reconciliations.
  7. Print the Reconciliation Report then click Reconcile again to finally reconcile the account.

Here's our example:

The Total Cleared amount (in the Withdrawals column at the bottom of the window) should equal the total of your cash receipts.
5. Reimubrse the petty cash account

The Total of the Reconciled Cheques shown in the Reconciliation Report is the amount needed to reimburse the Petty Cash account. This Total should equal the balance of the cash receipts in your physical 'petty cash tin'.  

The following window shows an excerpt from the Reconciliation Report. It can be seen that $58.60 is needed to reimburse the Petty Cash account. 


 You can now record a Spend Money transaction to reimburse the account.

  1. Go to the Banking command centre and click Spend Money.
  2. Click the Pay From Account field and select your cheque account in the adjacent field.
  3. Enter the Cheque No, Date, Amount and Memo.
  4. In the Acct# field in the lower portion of the window, select your Petty Cash account.
  5. Make sure you select N-T in the Tax/GST column.
  6. Click Record.

Here's our example:

After entering this transaction, the petty cash account balance should equal its original opening balance.