How to Record Cash in your Pocket Transactions in QuickBooks
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:

Cash in Your Pocket Transactions: Chart of Accounts

If you do not have a cash account set up in Quickbooks, click on new so you can add a new cash account:

Cash in Your Pocket Transactions: 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:

Cash in Your Pocket Transactions: New Account Category

 

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:

Cash in Your Pocket Transactions: 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:

Cash in Your Pocket Transactions: Input Cash on Hand

 

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:

Cash in Your Pocket Transactions: View Register

 

STEP 4: Change the Payee

Now, drop down the add menu and add an expense.

Cash in Your Pocket Transactions: 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:

Cash in Your Pocket Transactions: Member or Owner Draw

Congratulations! You have now input your cash into QuickBooks and put “cash in your pocket”.

 

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