Companies often have a petty cash account for small day-to-day expenses such as office supply purchases, small parts, and employee reimbursements. This account is usually replenished from a bank account when it runs low, and receipts from the expenditures are periodically entered into QuickBooks. Reconciling a petty cash account is similar to a checking or savings account, except that the cash balance on hand is reconciled against receipts.
For more information about setting up and recording petty cash accounts, refer to the following topics:
Reasons to reconcile petty cash accounts
Reconciling a petty cash account is important for many reasons. For example:
Reconciling petty cash accounts
Use the QuickBooks bank account reconciliation tool. If the saved receipts don't match the change in cash balance plus any replenishments since the prior reconciliation, either make an adjustment to the entry using the reconciliation tool or make the adjustment prior to completing the reconciliation.