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Manage your Petty cash account

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Summary

How to post and track the activity of your Petty cash transactions in Sage Accounting.

Description

Many businesses have a petty cash account for everyday purchases or costs. This can include office supplies, parking charges and petrol.

Petty cash transactions can often be cash only. You can also use them to reimburse employees or buy items for small amounts.

We recommend you create a special petty cash bank account to track these payments. This also helps you report and manage how you spend your petty cash.

Resolution

Set up a bank account to represent your cash expenses. Rather than being an actual bank account, set up a special bank account for cash only. As this account is for cash only, you can't reconcile it.

Create a petty cash account

If your business has a petty cash account for everyday purchases or costs, you can create it in Sage Accounting to record these transactions.

Follow our article to create a petty cash account.

Record petty cash payments

Enter details of the cash you've spent and track your petty cash balance.

Follow our article to record petty cash payments.

Record a transfer of money in and out of your Cash Account

Record a cash transfer

When you need to add to your petty cash and you take money from another bank account, record this as a bank transfer.

Follow our article to transfer money into your cash account.

Record a cash deposit

When you pay cash into another bank account from your cash accounts, record this as a bank deposit.

Follow our article to transfer money out of your cash account.

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