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Quickbooks experts

Discussion in 'Business Operations' started by Frue, Dec 30, 2007.

  1. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    How do you record a exspense you paid cash for?
    Thanks in advance
  2. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,388

    Write yourself a reimbursement check. In the future get a company CC, much easier to track. Receipts are a pita.
  3. Ruben Rocha

    Ruben Rocha LawnSite Senior Member
    Posts: 577

    You can simply make an additional Bank account and call it petty cash. You can use it for cash payments from customers and expense disbursements. Since it is not really a true bank account it will not hose up your bank statement. It works for me just fine.

    or the hard way would be a General journal entry(PITA)
  4. Edgewater

    Edgewater LawnSite Senior Member
    Posts: 457

    What I do is monthly expense reports.

    I track everything that I bought for the business personally with cash, credit or whatever. At the end of the month, I have a total. I then create a cheque just as I would for any vendor. You put the spread sheet and the recipts for all the purchases in you files.

    If we are talking about cash that belongs to the business.. that is different. I think it has been over two years since I had a customer pay an invoice in cash. All business transactions are cheque, credit card or debit card.

  5. Doug1966

    Doug1966 LawnSite Member
    Posts: 118

    1. Make a vendor bill.
    2. Vendors, pay bills, pay from your bank account.


    Banking > write checks, and assign no check number, pay from your bank account.
  6. Happy Frog

    Happy Frog LawnSite Bronze Member
    Posts: 1,224

    The proper way to do so is a little tricky.
    You have to create an equity account and register your expenses in the equity account.
    When you reimburse yourself (by check or withdrawal), you have to make the corresponding entry on the equity account.
    Use the help in Quickbooks, it explains the process to do so. Ask a CPA if you're not sure.
  7. mastercare

    mastercare LawnSite Senior Member
    Posts: 289

    My accountant helped set up my QB and set an account up for me called "Payments made by Dan." You could just as easily use Petty Cash as the title. When setting up the account title it as "other liability." I have it set up as an account (just like any other liablity, i.e. credit card purchases).

    As a liability (rather than a vendor) it means that your company owes you the money. You can therefore get the deduction whether the company pays you back or not, that is, if you're using accrual based accounting which most people do.

    If you do decide to have the company pay it off, just write the check to yourself (or your wife to avoid confusion between owner's pay and a liability payment). That check would of course come out of your checking account and get paid towards your liability account.

    Like I said though, you can carry a full balance, pay it off, or pay it in pieces if it is set up as an "other liability."

    Some of the other methods suggested will work, but from an accounting standpoint, this method makes more sense.

    Hope this helps
  8. rjgolfer

    rjgolfer LawnSite Member
    from Midwest
    Posts: 108

    I happen to be a CPA and the easiest way is to set up a "Due to Stockholder" liability account and clear that liability every month or quarter by writing a check to yourself.
  9. backors

    backors LawnSite Member
    Posts: 14

    Whatever you do, realize that cash spent on expenses will be counted AS INCOME by the IRS if you are ever audited.

    Unless you can show ATM withdrawls, "less cash" withdrawls on your deposits or checks written for cash, any and all cash expenditures will be added to your sales.

    Believe me -- it happened to us. Luckily, we could account for the source of the cash.

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