Xero - beautiful accounting software

Xero Business Help Center

Xero Business Community

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Is it possible to reconcile all cash withdrawn to an account - say petty cash - then reconcile receipts/ invoices against this account?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