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1. Deposit money into your petty cash account

Petty cash is usually started with money withdrawn from the cheque account. To reflect this in your company file, follow these steps:a savings account. You might withdraw funds from an ATM or over the counter.

1. Go to the Banking command centre and click Spend Money. In BusinessBasics, go to the Command Centres menu and choose Banking then choose Spend Money.Click
2. Select the Pay From Account option and select your cheque bank account in the adjacent field.
3. Enter details such as Date, Amount, Cheque No and Memodate and amount.
4. In the Acct# Acct No. field in the lower portion part of the window, select your Petty Cash petty cash account.
5. Make sure you select Select the N-T in the Tax column./GST code. Here's our example:
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6. Click Record. See our example below.
    

2. Record a petty cash

purchase

You record petty cash purchases in the same way as a cheque paymentother 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. In BusinessBasics, go to the Command Centres menu and choose Banking then choose Spend Money.Click the
2. Select the Pay From Account option and select the Petty Cash account in the adjacent fieldpetty cash account.
3. Enter the Cheque No, Date, Amount and Memo.Click the Acct# field and date and amount, and any other details you need.
4. In the Acct No. field, enter the expense account. Move your cursor to the Amount field and if necessary enter the
5. In the Amount field, enter the purchase amount.
6. Apply the relevant Tax/GST Code then click Record. The window below shows a sample Petty Cash purchase. . Here's our example:
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7. Click Record.

3. 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 will also provide It also provides you with the reimbursement amount.

1. Go to the Banking command centre and click Reconcile Accounts.
2. Select In the Petty Cash account in the Account field then enter the current date , 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 Clearedcleared. You will '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 tin' in the New Statement Balance field (the Closing Statement Balance field in AccountRight 2011 and later).
6. If this equals the Calculated Statement Balance, the Out of Balance field will display zero.Providing the account balances, click Reconcile. shows $0.00, click Reconcile. Here's our example:
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7. Print the Reconciliation Report then click Reconcile again to finally reconcile the account. The window below shows the Petty Cash account being reconciled

Having trouble reconciling? See Resolving out of balance bank reconciliations.

4. Reimburse the petty cash account

If you set a top-up limit for your petty cash (like, $500 each month), then you can use the Total of the Reconciled Cheques transactions shown in the Reconciliation Report is as 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 $71.

Here's an example Reconciliation Report which shows $71.53 is needed to reimburse the Petty Cash petty cash accountNow that the reimbursement amount has been determined:.

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

1. Go to the Banking command centre and click Spend Money.
2. In BusinessBasics, go to the Command Centres menu and choose Banking then Choose Spend Money.Click the Pay From Account field and , select your cheque bank 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 Acct No. field, select your Petty Cash petty cash account.
5. Make sure you select Select the N-T in the Tax column./GST code. Here's our example:
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6. Click Record.

The following window shows a sample of the reimbursement transaction. After entering this transaction, the Petty Cash account balance should petty cash account balance should equal its original opening balance of $100.00. This should be confirmed by using the Balance Sheet report.