How to Set up and Use Petty Cash in QuickBooks?

Now Learn how to set up and use petty cash in QuickBooks Online. Petty cash is a convenient supply of cash you can use to pay small expenses. Here’s a few tips on how to manage petty cash, and how to track it in QuickBooks Online/Desktop.

How to set up a petty cash account:

Here’s how to create a petty cash account. When you move cash from your bank account into petty cash, you should see it in this account.

1. Go to Settings ⚙ and choose Chart of Accounts.
2. Select New.
3. From the Account Type drop-down▼, choose Bank.
4. From the Detail Type drop-down▼, select Cash on hand.
5. Enter Petty Cash for the account name.
6. The opening balance might be created while you move money from the checking account via writing a test or shifting funds. If you have already got money to use for petty cash, enter the quantity in the Balance field and choose the as of date.
7. Select Save and Close.

How to manage petty cash:

Now that you’ve created the account, it’s time to put some money in it. Here’s how to get started and keep up with everything you do in petty cash.

Tip: You should designate one person at your company to manage the petty cash box and keep track of each withdrawal.

Put cash in:

1. Withdraw some cash from your current account and placed in a locked cash box.
2. Note transaction in QuickBooks Online.
   • If you wrote a cheque for cash:
     1. Select + New.
     2. Now Select Cheque.
     3. Select Petty Cash as the payee. Select +Add new if petty cash isn’t in the list of payees.
   • If you took out the cash without writing a check:
     1. Select + New.
     2. Select Transfer.

Take cash out:

When you give cash to an employee or use petty cash yourself, record it with a slip of paper to track who, when, and what the money was used for. This is like a receipt to track the cash that you take out.

In QuickBooks Desktop, record taking cash from petty cash as an Expense with petty cash as the payment account.

At all times, the amounts on the slips of paper and the cash you have left should add up to the amount you deposited in the box.

Tip: It’s a good idea to reconcile your petty cash account regularly. Once you do, you can move your paper slips to your long-term record keeping, because the transactions are in QuickBooks.

Our Support:

Now you can set up and use petty cash in QuickBooks easily by following the above steps. In case you are unable to set the petty cash in QuickBooks, then you can connect with our QuickBooks technical support team at  or connect with our team by QuickBooks live chat support option. They will solve your problem in minimum amount of time and also guide you how to set up petty cash in QuickBooks desktop/Online. You can call or chat with us at any hour of the day 24×7.