Cash on Hand / Event Cash

This bank account would be used for petty cash or when you need cash for an event.

Use this method as opposed to using a Cash on Hand Category, as this method will not inflate your income and expenses for the year.


  • Start by clicking on the Banking icon in the toolbar.


  • Click Add Bank Account.


  • Name the account Cash on Hand.
  • Start with a balance of $0.
  • Click Save.


When you need cash for an event, record it as a Transfer between accounts:
  • Go to Banking.
  • Click New Transfer (under Checking).
  • The From Bank Account will be the bank account that you are getting the money from (ie Checking Account).
  • The To Bank Account will be Cash on Hand.
  • Enter the date that the money is coming out of the bank in the Date field.
  • Enter the $ amount in the Amount field.
  • If you have written a check, record the check # in the Reference field.
  • Use the Memo field to note the reason/event you took cash out.
  • Click Save.

It should look something like this:

If you go to the Home Page now, you will see that your Checking Account has decreased by the amount of this transfer, and your Cash on Hand / Event Cash account shows the amount you transferred. This reflects reality.


TIP: When you are ready to put the money back into the bank, it is best if you re-deposit the cash on hand in a separate deposit at the bank. This makes it very clear to anyone looking at your accounts that the money was re-deposited. It also prevents you from overstating your earnings by the amount of the cash on hand. When you’re ready to re-deposit the cash, record it as a Transfer between accounts again

  • Go to Banking.
  • Click New Transfer (under Cash on Hand).
  • The From Bank Account will be the Cash on Hand account.
  • The To Bank Account will be the bank account that you are depositing the money to (ie Checking Account).
  • Enter the date that the money is being returned to the bank in the Date field.
  • Enter the $ amount in the Amount field.
  • Use the Reference field to note the original check number (if you used one) when you withdrew the money.
  • Use the Memo field to note the reason/event you are putting cash in.
  • Click Save.

It should look something like this:

If you go to the Home Page now, you will see that your Checking account has increased by the amount of this transfer, and your Cash on Hand account shows $0.

 

 

2 Comments

  1. Kate Vega

    thank you for the information. I have a few questions regarding this:
    Will I be able to pull in these transactions from the online banking option I have been using for other transactions or do i have to do it manually as the example shows? Also, can I apply this to previous transactions to get the hang of it since we definitely won’t be having any events for a while?
    Thank you in advance, Kate Vega

    1. Julie Rice

      Hi Kate,

      Yes, all your banking will pull over as always. Sure, you would need to delete the previous withdrawals and deposits associated with the cash box and re-do them as transfers. The account is not reconciled, so you would not have to worry about un-reconciling and re-reconciling. Please let us know if we can help further.

      Warm regards,
      Julie

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