Recording cash expenses is a very important task in your daily transactional activities. These cash transactions might be small, or too tiny to be added up as amounts.
As a healthy financial practice, it is perennially recommended to record cash purchases. In QuickBooks, you can record all your cash purchases and you can maintain all your data effortlessly.
This article will help you in understanding how to record cash purchases in QuickBooks.
What is Recording Cash Purchases in QuickBooks?
At times, in your daily business activities, you must be dealing with a lot of petty cash and most of these are not well-recorded in your data book.
QuickBooks now helps you to manage the daily transactional activities including recording all your cash purchases.
Each of the cash transactions that you do every day, now with QuickBooks you can manage and record all of them.
Why do you need to Record Cash Purchases in QuickBooks?
As said, a lot of petty cash transactions might be involved in your daily business activities. Recording it or managing it in your books, might not sound or feel necessary at times.
However, when you would be sitting to filing for your taxes, these type of transactions or cash expenses might get missed due to which it might result in overstating your income.
Thus, recording your cash purchases or recording your cash expenses becomes quite important. Below are the steps that would help you further to understand how to record cash purchases in QuickBooks.
How to Record Cash Purchases in QuickBooks Easily
To record cash purchases in QuickBooks, follow the steps that are laid out below for your detailed understanding:
Step 1: Hit the Plus icon, which you can see at the top of QuickBooks. Select Expense under the Supplier’s section.
Step 2: From the Payee drop-down, you need to choose a respective payee.
Step 3: To log the expense, you would be needing to select an account. If you wish to make use of a cash account for cash purchases, you may choose to do so.
Step 4: Input the purchase data and choose Cash as the chief payment method.
Step 5: From the Account drop-down list, select an expense category.
Step 6: In the next step, you would be entering a description and a specific amount accounted for the purchase.
Step 7: If a sales tax has been paid, you need to specify it on the sales tax field.
Step 8: Hit on Save to record the data successfully.
Syncing Bank Accounts with QuickBooks
It often happens that users post certain transactions to a specific account. Such accounts can be accessed via the Chart of Accounts. You can choose a specific transaction and select the print command to receive a hard copy of the particular form.
There are different automated processes via which users can register transactions. Automating the particular task of registering the transaction can be performed through linking a specific bank account with QuickBooks.
If you want to link your bank account with QuickBooks, please follow the steps given below:
Step 1: Log into your particular QuickBooks account.
Step 2: Select Connect Account. You can see this particular option on the Bank Account Card that can be accessed via the dashboard.
Step 3: Select the Search Field and enter the name of your bank.
Step 4: Add the credentials of your bank.
Step 5: From the options given, choose the type of bank account.
Note: You can now work directly with Bank accounts from your QuickBooks. All the transactions will be synced into the bank accounts directly. When the sync will be done for the first time, users need to categorize every transaction. Post this, QuickBooks gets an idea of the preferences of users and hence automatically add them and categorizes the transactions. Such transactions are added in the specific accounts and can be accessed via the Chart of Accounts.
Thus, now that you know how to record cash purchases in QuickBooks, hop on for it to ensure all your data is tactfully recorded.
Need Some one on one QuickBooks Assistance?
How can I Enable Records of real-life Cash Transactions in QuickBooks?
While adding a transaction in QuickBooks, you would be having a choice to choose under which account would you record this transaction.
Follow the steps mentioned below to enable records of real-life cash transactions in QuickBooks:
Choose Cash Account.
How to Add a Cash Account in QuickBooks?
Here are the steps to open a Cash Account in QuickBooks:
Step 1: Open the QuickBooks account as an Administrator.
Step 2: Select and choose to open the particular Chart of Accounts.
Step 3: Select the New option to create the account.
Step 4: In the field of Account type, you will witness two options, Cash at Bank and Cash in Hand.
Step 5: In the particular Detail type field, choose the drop-down arrow.
Step 6: Select the option, Cash on Hand.
Step 7: Add all the necessary details like opening balance, account name, etc.
Step 8: At the end, select the button Save and Close in order to complete the setup of the account.
How to Record all the Cash Transactions in QuickBooks?
Here are the steps to record cash transactions in QuickBooks:
Step 1: In QuickBooks, navigate to the transactions through the left side of the money.
Step 2: No select the Add option to register the new transaction.
Step 3: Add the details concerning the transaction like date, category, amount, anything.
Step 4: Now select the Save option in order to store it in your particular PC.