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Expenses from the till


#1

Hello
I’m just trying to get to grips with QuickFile - most things seem fine so far however I can’t work out how to deal with cash expenses. We are a small shop and cafe and use an EPOS system which gives us the sales broken down by cash and card. Those entries are added as invoices to record our sales. For our purchases we get various invoices from our suppliers and those are all input into QuickFile as they are then tagged to the appropriate amount in the bank. We spend about £500 on cash expenses ie things we pay for out of the till such as cash stock purchases. These don’t go anywhere near the bank so I’m aware that we don’t seem to be accounting for them anywhere. Our EPOS system records these expenses so we know how much was spent and also what on. I did think we could create a supplier called eg Petty Cash and create a supplier’s invoice once a week itemising the expenses but as I don’t have an entry in the bank statement I won’t be able to tag it to anything. What’s the correct way of dealing with this in QuickFile please?
Many thanks
Helen


#2

How do you currently handle the EPOS sales in terms of which bank accounts they pay into?

I run a similar system, my EPOS gives me a Z reading with the day’s sales total (net and VAT) and card and cash payment totals. I create one invoice per Z read and log the card payment into a “barclaycard holding account” and the cash payment into the “petty cash” account.

When the card payments hit my bank account this is just a bank transfer between accounts (from the holding account to the current account), and when I pay cash into the bank that’s also a bank transfer (from petty cash to current account).

This way cash purchases are no different from card or bank transfer purchases, I just mark them as paid from the petty cash account instead of the current account. They’re recorded the same way in QuickFile as purchases from the relevant supplier, with the supplier’s receipt attached to the purchase record via the receipt hub.


#3

Hello Ian
Thanks for your reply.
We currently record all our EPOS sales into a single bank account - both card and cash payments. We create a monthly invoice - our EPOS system gives us a monthly VAT report so we take those for the period and create an invoice with the three VAT amounts ie NO VAT, 5% and 20%. At the month end we allocate all our actual bank payments (cash and card) against the invoice. As expenses come directly out of the till and never go anywhere near the bank it means we don’t account for them at all for them and need to. From your comments I think we might need to re-think how we do things.
Regards
Helen


#4

I think you need to change the way you do things! It certainly doesn’t sound right and hmrc will likely investigate the cash side as its not traceable very well.

I wouldn’t use petty cash. Create a new bank account, call it cash account.

When you do a z read, all cash sales go to cash account.

When you purchase something in cash, tag the purchase to the cash account transaction. The remaining balance will be cash left over, any cash paid in to the bank is a simple transfer tag from one account to the other.

This way all record of cash is shown clearly.


#5

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