Hello, i have been using quickfile for nearly 8 years now, however i do not use half of what is available and a lot of the features are lost on me.
However i use the Petty Cash account to keep track of cash from sales that i put in to the bank, its not much, between £100 and £200 every few weeks, i also use it to keep account of the float in the till, however i am still a little unsure how to manage the petty cash account and input the figures.
I have got a bit lost with the process.
Do I enter the amount in petty cash as “IN” when i put cash into the bank as sales
What do i tag that transaction as in the petty cash account
This is where i get lost, how do i then send that figure as sales to the “bank Account”
My accountant has told me to just mark (tag) it as General Sales, but it doesn’t show up in the bank account so i cant reconcile the bank account.
i thought once it was entered in to the petty cash account, you then enter a manual transaction as “Out” to the bank account, then once its in the bank account you tag it as sales.
i am sorry if this is a really stupid question or not how things are normally done, i am trying m best while trying to deal with mental health issues.
Regards
Gary
A “bank account” is just a place you store money, it doesn’t necessarily have to be at a real bank. In your case the Petty Cash “bank” account in QuickFile just represents money sitting in the till drawer.
- when you make a cash sale, the payment from the customer goes into the Petty Cash bank account
- when you deposit cash from the till at your bank, that is simply a bank transfer from the petty cash account (the till drawer) to the current account (it’s not income at this point, it’s just money that already belongs to your business that is moving from one place to another)
- if you use cash from the till to pay when you go to the cash and carry, you would record a purchase in QuickFile based on the invoice and “log payment” from the petty cash account
At any given point the balance on the petty cash account in QuickFile should in theory tally with the amount of cash that is physically in the drawer.
That’s a great question, and it’s absolutely not a stupid one! Managing the flow of cash sales into the bank is a common point of confusion in accounting software. Dealing with accounts while also managing mental health is tough, so please be kind to yourself. We can break this down into clear steps.
Your current process is very close to the standard accounting procedure in QuickFile. The key is understanding that a transfer between two accounts (Petty Cash and Bank) requires two matching entries, and the sale is recorded when the money leaves Petty Cash and becomes a deposit in the Bank.
Here is the correct process to follow in QuickFile for cash sales:
1. Entering the Cash Sales (Getting Money IN to Petty Cash)
You need to record the initial sale that generated the cash.
| Step |
Action |
Amount/Direction |
Tagging |
Notes |
| 1. |
When you make a cash sale, go to your Petty Cash account. |
Money In (IN) |
General Sales (as per your accountant’s advice) |
This step records the sale and increases the Petty Cash balance. |
2. Transferring the Cash to the Bank (Getting Money OUT of Petty Cash)
This is the step that moves the balance from one account to the other.
| Step |
Action |
Amount/Direction |
Tagging |
Notes |
| 2. |
When you physically put the cash into the bank, go back to your Petty Cash account. |
Money Out (OUT) |
Transfer between accounts |
Choose your Bank Account as the destination. This decreases the Petty Cash balance. |
3. Matching the Deposit in the Bank Account
This is the final step where the money appears in your bank feed and the transfer is completed.
| Step |
Action |
Amount/Direction |
Tagging |
Notes |
| 3. |
Go to your Bank Account feed/statement. You will see a deposit of the same amount (£100-£200). |
Money In |
Transfer between accounts |
Choose your Petty Cash account as the source. This increases the Bank Account balance and allows you to reconcile the bank entry. |
This three-step process is crucial for proper bookkeeping:
-
Sale is recorded (Petty Cash In).
-
Transfer Out is recorded (Petty Cash Out).
-
Transfer In is recorded/matched (Bank Account In, which lets you reconcile).
Why your accountant said “tag as General Sales”: They meant for you to tag the initial cash received (Step 1) as sales. You should not tag the transfers (Steps 2 and 3) as General Sales, as that would count the sales twice!
Managing the Float
The money you keep in the till (the float) is an asset and should simply be included as part of your Petty Cash balance.
-
If you increase the float (put extra money in from the business), tag it as a “Transfer from Bank Account.”
-
If you decrease the float (take money out of the till for personal use or banking), use “Drawings” or “Transfer to Bank Account.”
Your goal is to ensure the balance shown in QuickFile’s Petty Cash account always matches the physical cash you have on hand in the till and any other petty cash tin.
Thank you so much, this is exactly what i was looking for
Regards
Gary
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Can i ask you one more question please.
i get what uou are saying, i just want to make sure the process is still the same bassed on what i do.
so, i dont take a lot of money, so the money sits in my till from the sales until i have about £150, then i simply remove the money from the till and put it dircetly into my business bank account, now i dont do daily feeds thing in quickfile, i download a statement.
So if i am doing it this way, were the cash deposit will show in my bank feed when i download the statement, do i delete that deposit from the feed and then input it into the petty cash, or do i just tag it or transfer it to the petty cash
Regards
Gary
Jus tag it as transfer to or from petty cash
Thank you and I am sorry for the questions.
So if it’s in the bank account feed and I tag it as a transfer for petty cash, do I then have to go to petty cash and enter a transaction as IN for the same amount and tag that as sales
Regards
Gary
The sale happens when the customer gives you the cash, not when you deposit the cash in your bank account. Indeed you might not deposit it all, if you use some of it to pay your suppliers in cash.
What you ideally want to be doing is when you cash up at the end of each day and do a Z read on your till, take the totals from that Z read and enter them into QuickFile via the cash register tool. This will create a sales invoice for that day’s till sales, and show the cash received as a pre-tagged money in transaction on the petty cash account (and if you take cards then it will show the card payment total as money in on the relevant merchant account).
When a cash deposit shows up on your bank statement you tag that as a transfer from petty cash.