Tekmetric recommends handling overhead expenses, petty cash and cash drawer close out using the process described below:
- Many shops will use a form like the ones linked here that the manager fills out at beginning of the day and end of the day.
- At the end of the day, the manager counts out all the cash and writes the total cash.
- Then, there would be a line for cash adjustments, petty cash transactions. As the owner, you can train your team to require any receipts and/or explanations with sign-off from the employee. The sum of actual cash plus the receipts/explanations plus the running minimum cash balance in the drawer (usually ~$200) should equal the cash balance that Tekmetric says you have on the End of Day report.
- Leave the minimum required cash drawer balance (~$200) and take out the rest of the cash.
- The manager would sign off the form for the day and bundle the checks/cash and wrap the printed EOD and Cash Drawer recon form around the stack and drop in safe.
- When the owner/accountant gets this bundle, the adjustments from #3 above would not have been captured in AccountingLink and the "Cash" balance in your Quickbooks software would be more than what you actually have. A manual entry would need to be made in Quickbooks to reduce Cash account and increase some sort of misc overhead expense account. This will bring your true petty cash and Quickbooks balance to align.