Hello
This is really two questions:
- Our shop takes credit/debit card payments via a machine. We are receive a monthly statement from the company that administers this. They take their payments out automatically so there is no payment to tag their invoice against - how do we account for this please?
- Any cash expenses we have are logged on our epos system and the money is taken from the till to pay for them. How should these payments be shown in Quickfile?
Any help greatly appreciated
Regards
Helen
Hi @HelenTheShop
Starting with your sales through the card machine, there’s 2 parts to this really. It involves adding a new merchant account which acts as what your merchant takes on your behalf. We actually have a guide on our knowledge base on this, here: Accounting for income from a payment service provider
Moving on to the cash expenses, you would log these as normal and log them as paid from the “Petty Cash” account. This account should represent what you have as cash.
Hope that helps, but please let me know if you have any further questions 
Hello Mathew
Thanks for the quick response. Apologies I must have missed the knowledge base guide - will have a look at that. Regarding the cash expenses where does the money come from to go into the petty cash initially? We can’t make a payment from the bank as the bank never sees this money?
Regards
Helen
It depends. Where did the cash actually come from?
It comes directly from the till. eg when we get eggs the local supplier gives us an invoice/receipt which we then pay directly through the till with cash. When we cash up this is recorded as an expense via our epos system and appears on the z report as such,
Regards
Helen
You would treat pretty cash as the cash in your till. So any cash payments (both in and out) would typically be tagged to this account.
Hello Mathew
Thanks again. Apologies I’m being a bit thick here. Can I try an example please? Let’s say we sold £100 of goods via our till - assume for this it was paid in cash by the customer. So at this point we have £100 in the till. If we pay £40 to our egg supplier from the till then the amount left would be £60 - this would then get paid into our bank - all very simplistic I know. What I am struggling to understand is how can I put the £40 into a petty cash account in Quickfile in the first place? I feel I am missing something obvious here - sorry.
Regards
Helen
Hi @HelenTheShop
No problem at all, I’ll try and help you
So, if you take £100.00 of goods paid by cash, you would typically have a sales invoice of some sort in your QuickFile account, with £100.00 tagged as money into your petty cash account, giving it a balance of £100.00.
If you then go on to pay £40 to your supplier, you would do the same but in reverse - create the purchase invoice as normal, and tag that as paid from the petty cash account, giving you a balance of £60.
If you then bank the full £60, you create a money-out transaction in your petty cash account, which is tagged as a transfer to your current account. This illustrates the deposit into your main bank account, giving you a balance in your petty cash account of £0.00.
Where the £40 comes from - I can’t answer that, as it depends on where it literally came from. If it was from a sale and not deposited, then it would still be in the petty cash account.
Does that make sense?
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Yes I think so - thank you so much. I’ll try it out next week.
Regards
Helen
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It’s really important that you understand how cash in and out is recorded as this is a very hot topic for hmrc and if you ever had an enquiry they would be all over it.
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