How to Record Cash Purchases in Accounting Software?

record cash purchases in quickbooks

Though online transaction in modern days has become the trend of the times, the earlier methods of transaction still remain prevalent. In fact, making the small payments through check or credit card is not always practical. Using the petty cash from the drawer becomes easier and more convenient. However, you can still record these cash purchases in the Accounting Software if you wish so. But the question that troubles many Accounting Software users is – how to record cash purchases in Accounting Software? Well, the Accounting Software users have already provided the solution of the problem. It will take a few minutes to learn the process. Once you learn it, you can recode the cash purchases in Accounting Software without undergoing any hassles.

Record Cash Purchases In A Few Simple Steps

Here we are going to provide you the steps which you can follow & Manage to Record Purchases in Accounting Software and these are the Nine steps which you can follow to do the necessary tasks.

✅ Launch Accounting Software >> Find List & Chart of Accounts >> Find ‘Account’ & click ‘New’ >> Enter The Account’s Name >> Choose The Current Date >> Find The Created Cash Account >> Fill The Details >> Choose Account >> Finally, Click ‘Record’.

Total Time: 4 minutes

1. Launch Accounting Software

Launch Accounting Software and sign in by entering the required details

2. Find List & Chart of Accounts

✓ Explore the menu and find ‘Lists’.
✓ Scroll further and find ‘Chart of Accounts’.

3. Find ‘Account’ & click ‘New’

✓ From the drop down menu, find ‘Account’, and then click ‘New’.
✓ Now select ‘Bank’ and then click ‘Continue’.

4. Enter The Account’s Name

Enter the account’s name in the Account field. You can choose the names as per your convenience. You can keep any name like Petty Cash, Cash Purchases, Cash Drawer, or Cash Record etc.

5. Choose The Current Date

✓ Choose ‘0’ for the opening balance and choose the current date.
✓ Click ‘Save & Close’.
✓ Select the ‘Lists’ from the menu again and choose ‘Charts of Accounts’.

6. Find The Created Cash Account

Find the cash account you have created right now and click on it.

7. Fill The Details

✓ Enter the payee’s name, receipt amount in the column provided.
✓ You can press ‘Tab’ key and move to the next lines.

8. Choose Account

✓ From the drop down menu, choose ‘Account’ that you want to associate the record with.
✓ If you need to split the amount, you can click ‘Splits’ and enter the amounts.

9. Finally, Click ‘Record’

Finally, click ‘Record’ and the process will get completed.

Alternate Methods to Record Cash Purchases in Accounting Software?

How to add a cash account in Accounting Software?

  • First of all, open the Accounting Software as an administrator
  • Then click and open the Chart of Accounts
  • In this, click on the New option to create the new account
  • Now the field of Account Type has the option Cash at bank and in hand, select it
  • In the Detail Type field, click on the drop-down arrow
  • Then click on option Cash on Hand
  • Now you have to provide all the details in it like opening balance, name of the account, and more
  • In the end, click on the button Save and Close to finish the setup of the account.

How to record cash transactions in Accounting Software?

  • In Accounting Software, you have to go to the transactions from the left menu
  • In that, select the Add option to add or record the new cash transaction 
  • Now fill the details related to the  transaction like category description, date, and amount
  • After that, click on the Save option to save it in your Accounting Software account.

How to enter cash expenses in Accounting Software desktop? / How to enter cash receipts in Accounting Software?

  1. In the Accounting Software account, Click on the + icon that is at the top of the window 
  2. Then you get the box with the following options, from that click on the Expenses under the heading of Suppliers 
  3. Then from the first field in the Expense window
  4. Choose the Payee or type their name in it to whom you want to pay the expenses
  5. Then click on the add if you want to add a new payee
  6. Now you have to click on the Details option for adding more information about the payee
  7. You can also add this information later if so, you can click  on the Save option to do it later
  8. Now choose an Account for the expense and choose the Savings option as you are doing the cash expense
  9. Mention the date of the purchase or expense you done in the field of Payment date
  10. Then in the Payment method field click on the Cash option
  11. Now under the Account details heading, choose the category for the service or item you have purchased
  12. In front of it, add the description of the expense
  13. After that, mention the amount paid to the payee in cash
  14. Click on the Save and Close button to finish, save, and close this window.

How to record Expenses in Accounting Software?

These expenses are of any type and are done for your business. These expenses can be done with any payment mode it can be done by credit, debit, cash, and more ways.

  • Open the Accounting Software and click on the + icon 
  • In this, click on the expenses
  • Then select the payee or add the new payee then click on save after adding a new payee
  • Now click on the account category and select the Chequing account option whether you get payment from any type of cards like Visa, Credit, Debit, or Master
  • Now enter the payment method you have done and the date of the payment when the purchase is done
  • In the Account details section, select the category and then add description, amount and desired Sales tax
  • Add more lines if you have purchase items of different categories and mention their details
  • Click on the Save and New button if you want to add new expense with a different payee
  • Otherwise, click on the Save and Close button.

The process is quite simple. Any Accounting Software user can learn in just a few minutes and start reaping the benefits of the highly elegant features of Accounting Software.

Tip#1: How Accounting Software inventory adjustment can be deleted or edited as well if needed?

Efficient Maintenance Of Records And Accounts

The feature of adding cash purchases in the Accounting Software facilitates the efficient maintenance of the accounts and the records. The cash spending can be accurately and conveniently tracked. Without this feature in the Accounting Software, it would have been mandatory for all Accounting Software users to maintain the cash purchases separately. It may be a bit confusing to use if you are new to it; however, you would find it quite an easy and simple task once you learn using it.