Petty Cash

[QES-acc-4]

Hi, I do need some advice for entering petty cash.

The company I work have different idea of petty cash, and it doesn't link to the bank we are using. Basically there is a Bank Account for the business and petty cash is seperated from this bank account. If the director is using some other card (beside company cards), he wants me to enter it as petty cash. Ant the money in the till is also not included in petty cash account. In MYOB petty cash account is already exist but it is in minus figure.

1. Using other cards which is not link to company Bank account. ( How to enter as petty cash?)

2. Money in the till is also not included in petty cash account ( How do I fix this?)

In this case do I have to enter receive money then spend money for the purchase? OR what should I do? Thank you in advance.

[Tracey_H]

Hi @QES-acc-4 

Thanks for your post. When setting up petty cash you would first decide on a float amount, say $200, you would then withdraw that amount from the bank and record that withdrawal through Spend Money. The Pay from field would be your bank account and you would allocate that amount to petty cash.

When you use petty cash to pay for purchases, you enter a Spend Money transaction with the Pay from field as the Petty Cash account and allocate the amount to the applicable expense account.

If you've spent $100 from petty cash and want to top up the float, you would record a Spend Money transaction with the Pay from field as the bank account and allocate $100 to the petty cash account. You would also withdraw $100 from your bank account.

A popular method of dealing with petty cash is to have a petty cash tin. When purchases are made, the receipts are put into the tin until the float is reconciled, ie, receipts plus cash in the tin should equal your float amount. The receipts are then entered in Essentials by the Spend Money transaction explained above and the cash is topped up to the float amount.

Another method is to use the till float as petty cash, you would put the purchase receipts into the till and balance and top up the till float at the end of day. Basically, the only difference in the two methods is where you keep the cash. The procedures for topping up the float and recording purchases are the same.

This help article has more information on petty cash transactions:

Petty Cash 

If you're unsure about the best way for your business to handle petty cash it is best to speak to the company accountant.

Please let me know if you need further help.

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