Hi
i sometimes get paid in cash, but rarther than putting it in the bank i keep it in a cash draw, i also use this cash to purchase goods etc,
how do i record the payment & where
if i use some of the money for goods where do i record this,
at the moment my petty cash is overdrawn do i put some of the money in there to balance it? or am i recording cash reciepts(payment for good) wrong??
i have no book keeping experience i have used a basic spread sheet before trying quick file all new to me
You essentially treat the cash drawer as another bank account - when you receive payment in cash you would log the payment on that invoice as being in to the petty cash “bank” account, when you use cash out of the drawer to pay for purchases you mark those purchases as paid from the petty cash bank account, and if/when you deposit some of the cash at the bank you tag that as a “bank transfer” from the petty cash account into the current account.
If you’ve recorded everything accurately then the balance of the petty cash account in QuickFile at any given time should line up with the amount of actual cash in the drawer.