How to Fund Petty Cash in QuickBooks Online

Funding petty cash moves money from your business bank account into the petty cash account. It gives you cash on hand for small day-to-day expenses while keeping the movement fully recorded — the bank account goes down, petty cash goes up, and nothing is treated as an expense until the cash is actually spent.

Step 1 – Open a New Transfer

A Create (+) – Click the Create button at the top of the left navigation bar to open the transaction menu.

B Transfer – Select Transfer under the Other column.

Figure – Opening a new transfer

Step 2 – Complete the Transfer and Save

The funds now sit in the Petty Cash account, ready to be spent. Record each purchase as an expense paid from Petty Cash so the balance always reflects the cash in the box.

A Transfer Funds From – Select the business bank account providing the money. Its current balance is shown to the right.

B Transfer Funds To – Select the Petty Cash account receiving the money.

C Transfer Amount – Enter the amount of the float being moved.

D Date – The date the cash was actually withdrawn, so both accounts move on the same day.

E Save and new – Records the transfer. Use the arrow beside the button for Save and close instead.

Figure – Completing the transfer