If you have a Petty Cash float then we advise managing it using a new bank account in Tally. Just follow the guidance below to get started.
First, create a new bank account to represent your petty cash account. Do that by going to Bank > Add a New Account. The three most important fields you should enter on the next page are:
- Account Name – this should easily identify the bank account, i.e. ‘Petty Cash’
- Start Date – this should be a date before the first transaction. To make things easy we advise that you enter 01/01/1970 here
- Starting Balance – this should be 0.00
When you’re done, click Add Account. You’re expense account is now ready to use. You can then record a transfer of funds from your main account to the Petty Cash account whenever you take money from your bank account and use it as your Petty Cash float. Do that by going to Bank > Transfer Money Between Accounts button. Use the options here:
- Date – enter in the date that you withdrew the money from your business account to the petty cash float
- Amount – enter in the amount withdrawn
- From – this will be the business bank account where you got the cash from
- To – this will be your petty cash account
- Comment – to make this easy to reconcile you can enter in something like ‘Petty Cash Deposit'
Record purchases made with petty cash in the standard way, the only difference is when marking the purchase as paid under the payment details section of the receipt select the bank account as Petty Cash. You will then have a historical statement of all transactions made via petty cash.