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Verifying or reconciling petty cash entries

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:

  • Many small expenses can add up to significant tax savings.
  • Petty cash may have been dispersed and a receipt was not submitted for the transaction.
  • Internal fraud can account for over 60% of losses with cash theft being a favored method. Frequent reconciliation of all of your accounts for management control and loss prevention purposes can help identify possible issues.

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.

 

 

KB ID# INF12301
9/22/2014 7:13:15 AM
PPRDQSSWS406 9102 Pro 2013 8588a4