Create a Cash Account in Zoho Books named “Petty Cash” with the imprest amount (the fixed float maintained in the petty cash box, typically INR 5,000 to INR 20,000 for most Indian SMEs). Record each petty cash expenditure in Zoho Books as an expense or bill, selecting the Petty Cash account as the payment source and the appropriate expense account (Office Supplies, Travel, Refreshments, etc.).
When the petty cash box runs low, the petty cash custodian submits receipts and requests replenishment. The finance team issues a cheque or bank transfer equal to the total of all vouchers. In Zoho Books, record this as a Transfer between your current bank account and the Petty Cash account. After the transfer, the Petty Cash account balance should equal the original imprest amount again.
Count the physical cash in the petty cash box. Add any unprocessed vouchers (expenses not yet entered in Zoho Books). The sum should equal the imprest amount. The Zoho Books Petty Cash account balance should equal the physical cash plus unprocessed vouchers. Any difference requires investigation before entering the replenishment entry.
Petty cash in Zoho Books is a small cash fund used for minor day-to-day business expenses. It is tracked as a Cash Account and reconciled regularly against the physical petty cash box balance.
Create a Cash Account named Petty Cash with the imprest amount. Record each petty cash payment as an expense. When the fund is replenished, record a bank transfer from your current account to petty cash for the replenishment amount.
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