Logging weekly Takings (by using invoices) with expenses

Accounting
1

Hi

I have opened a cafe and have to record my vatable and not vatable sales.
So I create an invoice with 2 separate lines, ones for vatable items, one for non vatable

However if my weekly takings according to the z reads come to
eg. £1102.57
then there was actually £820.65 cash in the till
and £233.75 from PDQ readings
and also £45.51 in expenses
apart from the fact that it is -2.68 down, what would I enter for the payment? as I need to account for those receipts/expenses in the invoice somehow?
Obviously I have recorded for those expenses in the purchases tab but because I only put £820.65 in my account in cash I don’t know how to record the invoice as being paid

2

Usually any expenses will get logged on a separate purchase invoice, what do the expenses relate to?

Once the invoice is raised you would usually log two payments against it, one to petty cash and the balance (presuming this is accounted for by card) to a merchant bank account in Quick File. If you’re using something like Streamline to collect card payments you would pay the balance into there, then when the card service provider remit the funds to your account you would issue a transfer from there to your current account.

3

Hi Glenn

The expenses are things bought and paid for during the day using money from the till.

Louise

4

Ah ok…

In that case don’t include them on the bulk sales invoice and raise separate purchase invoices marked as paid from petty cash. This will balance out the petty cash account and also give you separate purchase invoice records in Quick File, this will be required to correctly populate your VAT return.

5

Ok so I
Raise sales invoice for the week only with the cash and pdq incomings minus the expenses

Eg. If I took 1600 in a week yet spent 50 on food from the till
I just raise the sales invoice for 1550?

6

I would say that’s correct.

Then you would raise a separate purchase invoice (under ‘Purchases’) for the £50, again marking it as paid from Petty Cash.

If you’re opening balance on the petty cash account was £0.00, then this would show £1,550.

7

and then do i have to do anything else to the petty cash bit on a daily basis?

as my float is always £150 so how will it balance if I am putting purchases paid from petty cash?

8

Sorry. my error.

What you would have (in terms of petty cash takings)

  • 1 Invoice for cash daily takings - £1,600
  • 1 Purchase Invoice for food - £50 (leaving ‘petty cash’ balance at £1,550)
9

ok that would be great as I am really confused about the “petty cash” account

thank you very much

10

Ok, so as per above, you have one invoice and in this case, 1 purchase. But, you would have as many purchases as you require.

My petty cash account now looks like this:

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So, you can see, I’ve taken £1,600 and this is tagged to the sales invoice.
I’ve also paid out £50.00 to ‘Food Co. Ltd’, and that’s tagged to the purchase invoice.
This leaves me with a petty cash balance of £1,550.

Now, you say you leave £150 in the till, so if you bank all but the £150, you just enter a new line for the amount, like so:

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This would then be tagged as a transfer to the current account:

After this, my bank accounts now like the following - £150 left in petty cash, with the rest paid into my bank account:

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However, this would only account for just cash payments. Card payments involve a similar process, but I’m happy to explain that too if needed :smile:

11

oh right ok see i was just putting my daily takings as "paid to bank by cash) rather than petty cash as I take the into my bank at the end of the week.

And with the float from the till of £150 what do I “tag” that as in the petty cash account? I also have 340 change in the cafe so need to tag that too

12

The £150 will just sit there as a balance, so there’s no need to tag.

If you have £340 in change, you could probably leave that as the balance too.
Alternatively, what you could do to differentiate them, is create a second cash account, and call it, for example “Spare Change Account” and do a ‘bank transfer’ to show you putting extra cash in the till.

For example, the first thing to do would be to create the spare change account:

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Call it something like ‘Spare Change Account’ and therefore you can treat it separately (I would personally prefer this option as it helps me keep track on things a bit better)

So, at the end of the day, you could have something like this:

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And them to simply put the change back into the till:

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tagging both the in and out transactions for spare change as a “bank transfer”.

Does that make sense?

13

Hi

I am coming back to this question as I have realised I have to raise my invoices showing the VAT on them (being a cafe there are items I have to pay VAT on)
So for example, on the 19th September, I sold £123.52 of food that has no VAT on it, and I sold £58.25 which does have VAT on it (and will have to give this to the tax man), however I used £4 that day of money from the till to buy extra food.
Obviously I need to show the purchase of the extra food as a separate receipt/expense, but how do I show this on the invoice?
Also out of those sales, £174.77 was frm cash sales and £3.05 was in card sales…
Help please!

14

First of all you would log an invoice like this:

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Assuming all sales were made in cash you would log this invoice as paid and select the bank account “Petty Cash”.

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Now go to the petty cash bank account and add a “money out” entry for £4. You can then tag that as a payment to a supplier, this will create a purchase invoice and reduce the balance of your petty cash account.

The petty cash account is a type of bank account in QuickFile, so you can log cash in and out of it and track how much cash is held at any one time.

Hope that helps!