Record petty cash transactions and expenditure

• Tim Fouracre
• Wednesday, 17 June 2009
• Payments

To record petty cash expenditure in Clear Books you will first need to set up a petty cash account if you have not set one up already.

Step 1.

Navigate to “Money > Banking”.

Step 2.

You will need to add a new bank account for petty cash to do this click “New Account”.

Step 3.

Select to add a “Cash account” fill in the details of the account as required.

Step 4.

You should now treat your petty cash account as you would any other bank account.

Record all payments you make into the account (i.e. when you withdraw some money from your current account for the float) and record all payments out of the account (i.e. when you make sundry cash payments for stamps, milk, coffee etc).

There are two ways to record these transactions.

Re-create a petty cash statement manually.

This approach utilises our powerful bank import tool which requires you to first re-create the statement and then explain what each transaction is. To record these transactions re-create a ‘bank statement’ for your petty cash detailing all the activity.

You should now enter the details of each transaction on the recreate statement screen, this will then appear for explaining one after another.

Post Cash Transactions.

The alternative approach is to record transactions as and when they happen on an adhoc basis.

Navigate to “Money > Banking”.

Select either “Money In” or “Money Out” for your petty cash account.

You will be presented with a screen such as the one below, which allows you to enter the amount and description of the petty cash transaction.

Upon clicking “Explain” you will be taken through to the explain transaction page which you should treat the same as when explaining any other transaction with Clear Books.