1. Go to the Accounts command centre and click Accounts List. 
2. Click the Asset tab. 
3. Click New.
4. Select Bank in 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 an example:
    

If you're setting up a new company file and you're currently using a physical 'petty cash tin', enter the opening balance:

1. Go to the Setup menu and choose Balances > Account Opening Balances.
2. Locate the Petty Cash account created above and enter its Opening Balance.

Note: For more information on entering account Opening Balances, see Your first bank reconciliation.

If you're using an existing company file, petty cash is usually started with money withdrawn from the cheque account.

1. Go to the Banking command centre and click Spend Money.
2. Select the Pay From Account option and select your cheque account in the adjacent field.
3. Enter details such as Date, Amount, Cheque No and Memo.
4. In the Acct No. field in the lower portion of the window, select the Petty Cash account created above.
5. Select the N-T Tax/GST code.
6. Click Record.
   Here's our example:
    

Purchases made using petty cash are entered the same way as a cheque payment.

1. Go to the Banking command centre and click Spend Money.
2. Select the Pay From Account option and select the Petty Cash account in the adjacent field.
3. Enter the Cheque No, Date, Amount and Memo.
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 then click Record.
   Here's our example:
   

You need 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 will 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 Closing Statement Balance field.
6. If the Out of Balance displays zero ($0.00), click Reconcile. If there's an Out of Balance amount and you're having trouble reconciling, see Resolving 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 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'.

Here's an example Reconciliation Report which shows $71.53 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. In the Pay From Account field, select your cheque account in the adjacent field.
3. Enter the Cheque No, Date, Amount and Memo.
4. In the Acct No. field, select your Petty Cash account.
5. Select the N-T Tax/GST code.
6. Click Record.
   Here's our example:
   

   

After entering this transaction, the Petty Cash account balance should equal its original opening balance. You can confirm this by using the Balance Sheet report.

Click Reimburse to see a list of all the job purchases and expenses you have assigned a job number to, that can now be reimbursed on the sale.

You should enter the credit limit you've assigned in each customer's card. If you want to stop sales from being recorded for customers who have exceeded their credit limit, you can place them on hold.