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BLUF: Petty cash is a small float with a simple rule: cash on hand plus receipts should equal the float. When it does not, the difference is a question for the custodian and the owner.
The routine takes minutes if it is done monthly. It takes hours if it is done at year end.
Set the float and the custodian
Record the authorized float, the account it lives in, and the person responsible for the box. Both belong in the bookkeeping notes.
The float should be small enough that a loss is tolerable and large enough to cover routine purchases. If it keeps running out, the process is being used for expenses that should go through payables.
Count the cash
Count the physical cash with a second person or on video where practical. Record the denominations and the total.
Do not count from memory or from the register. The physical count is the evidence.
List the receipts
Sort receipts by date. For each, record the date, amount, vendor, purpose, and who spent it.
Check that the receipt matches the amount of cash missing. A receipt for $12.40 with $15.00 missing leaves $2.60 unexplained.
Flag receipts that are illegible, missing a date, or lack a business purpose. An unsupported receipt is not proof of a business expense.
Compare to the register
The petty cash register in QuickBooks should show the same expenses as the receipt list. Compare line by line.
Common gaps include a receipt that was never entered, an expense entered twice, and a personal purchase mixed into the box.
Record each difference with a proposed treatment. Do not post an adjustment until the owner approves it.
Replenish correctly
A replenishment is not income. Record it as a transfer from the bank account to the petty cash account, supported by the receipt total.
If the replenishment amount does not match the receipts, stop and resolve the difference first. Otherwise the float drifts and the next count starts with a hidden gap.
Handle the difference
If cash plus receipts is less than the float, record the shortage as an unresolved item and notify the custodian. Ask for an explanation before posting anything.
If it is more, look for an unrecorded expense or change that was added to the box. Overages are errors too.
Write off small, explained differences only with the owner's approval and a stated policy. A round-number write-off every month hides a process problem.
Report monthly
One line per month is enough: float, cash counted, receipts, variance, and open questions. Send it with the close packet.
Track variance over time. A recurring shortage points to a custodian issue; a recurring overage points to an entry problem.
Boundaries
The assistant can count, list, compare, and prepare the replenishment. Cash handling and write-off decisions stay with the owner and the custodian.
QuickBooks VA workflow table
| Workflow area | What the VA prepares |
|---|---|
| Daily queue | Invoices, receipts, bank feeds, and open QuickBooks questions |
| Weekly review | Owner approvals, exception list, and unresolved transaction notes |
| Monthly packet | Reports, missing documents, and accountant-ready source material |
Related resources
Compare the service fit on the QuickBooks VA services page, then use the free consultation form to map the first handoff. For platform context, review QuickBooks Online.
