Xero - beautiful accounting software

Xero Business Community

Xero Business Community

Hi everyone, Come on over to the new discussions in Xero Central. It’s a more intuitive way to connect and chat all things business with one another. Ask questions, dish out answers, and get involved.

You can still view topics in the Xero Business Community to see all the useful knowledge that’s been shared there; and you can restart conversations you feel have been of huge value to you on Xero Central.

If you have brilliant ideas for innovations, you can keep on adding feature requests in the Xero Business Community, and voting on existing requests. There’s more in store, as we come up with the best way to take on your thoughts and share developments
Community > Using Xero >

Petty cash

Started by john hannah -   in Using Xero

Hi,

In our business we take on interns from abroad on short term contracts. Their stay with us is part of their university degree and we pay them expenses only. As foreigners they do not have uk bank accounts and the fees charged by our bank to pay internationally mean that it is way better to pay them in cash.
The issue comes when we can’t withdraw the exact amount required from the atm because the machine only has £20 notes or we have to make more than 1 withdrawal because the amount is above our daily limit.

Is it possible to reconcile all cash withdrawn to an account - say petty cash - then reconcile receipts/ invoices against this account? Otherwise we are in a situation where we are forced to reconcile a cash withdrawal of £160 that was drawn to pay a £150 invoice and find something to do with the remaining £10 when in reality it is in a cash box in our office.

I hope this makes sense and that someone can advise.

Best,

John
Yes, you can set up a bank account for Petty Cash in Xero. Any cash withdrawals would be recorded in Xero as Transfers from the bank current account to the Petty Cash (bank) account. You will also be able to pay bills from Petty Cash and use Spend Money transactions for any small expenses. Done right, the Petty Cash account balance in Xero should agree with what is left in the cash box.
 

John Knight  

Thanks John, that sounds just like what we need.

 

john hannah