Petty cash is a small amount of money your business keeps on hand for everyday purchases.
EXAMPLE:
Office supplies, parking, and travel expenses.
In Sage Sole Trader, you track petty cash using your cash account. This is a default account that's set up for you when you create your Sage Sole Trader account. You'll find it in the Banking area alongside your bank account.
Your cash account is separate from your bank account. It's designed for recording physical cash transactions only. This means it doesn't support bank feeds or bank reconciliation. You enter all transactions manually.
Use your cash account whenever your business receives or spends physical cash. This keeps your records accurate and helps when you complete your tax return.
What you can do with your cash account
Record money you spend from petty cash
Record cash you receive from customers
Transfer money from your bank account to top up your petty cash
Personal withdrawals
If you take petty cash for personal use, this isn't a business expense. Categorise it as Non-business money out. For more information, see Owner drawings.
To learn more about the difference between bank accounts and cash accounts, see Understand bank accounts and cash accounts.