Tracking Petty Cash in QuickBooks in 5 Steps

1. Create a "Petty Cash" account : Tab Lists - Chart of Accounts - Account - New - choose  Bank type - hit  Continue - under Account Name write "Petty Cash" and hit Save

2. Write a petty cash check from your regular checking account and use Petty Cash as the expense account. 

3. Keep the cash and receipts for expenditures in a box or envelope.

4. Record expenses (two methods)
           - record receipts one by one (write check from a "Petty Cash" account...for example if you have five receipts  from Office Depot you will write five different checks.... the Payee will be Office Depot and under Expenses you should choose Office Supplies
           - record receipts in totals - go through the receipts and add up the totals.......for example you have two receipts from Office Depot and two from Staples, add them together and write only one check without payee information and under expense choose Office Supplies.

5. Count the petty cash periodically and verify that the amount on the books is correct.

Good luck

Milica Andelkovic
QuickBooks ProAdvisor