Ever wonder how to record “cash in your pocket” transactions in which someone gives you cash in Quickbooks, and you pocket that cash for personal use? Here are your instructions on how to do so.
STEP 1: Chart of Accounts
First, get logged into your QuickBooks. Drop the Transactions menu down and click Chart of Accounts as shown below:
If you do not have a cash account set up in Quickbooks, click on new so you can add a new cash account:
The new account will be under Category Type Bank and Detail Type Cash on hand. I named it Cash on hand, but feel free to call it whatever you like. Finally save and close:
STEP 2: Find the Customer
Next, navigate to the Customers portion of QuickBooks and find the customer that paid you. In our case, it was Amy’s Bird Sanctuary. Then, click Receive Payment:
In this case, the payment method was cash and we want to deposit it to the new account that we created earlier. In our case, the account is called Cash on hand. Input the amount and click Save and new:
STEP 3: View Register
Now, navigate back to your Chart of Accounts the same way that we did at the beginning. Find the account that we just created and click View register on that line:
STEP 4: Change the Payee
Now, drop down the add menu and add an expense.
Change the payee to be yourself or whoever has the cash. Change the payment amount to the same amount that you used earlier. Finally, change the account to either Member Draw or Owner Draw and click save:
Congratulations! You have now input your cash into QuickBooks and put “cash in your pocket”.