Cash withdrawals can be difficult to remember unless you record them. The users of QuickBooks can find the ease of knowing which withdrawal was made on a particular date by recording it. To record any cash withdrawal made by you, you should use your credit card or bank account. For the same purpose, even a petty cash account in the accounting software can be used.
In this blog, teaching you how to record a cash withdrawal in QuickBooks will be focussed on. The withdrawals will be inclusive of ATM cash withdrawals too. This will be done by applying several methods. These methods can be applicable to QuickBooks Desktop as well.
Knowing more about the topics included in this post can be possible through the following outline:
How to Record a Cash Withdrawal in QuickBooks via Bank/Credit Card?
cTo use one of them for this purpose, you can press Create(+) after opening the software. Then you can move to Cheque. On the off chance that you do not find this option, please opt for Expense. Then opt for Payee and choose your Bank Account. You can add the details of your withdrawal such as the amount of cash. Gradually, you can move closer to record your cash withdrawal in QuickBooks.
- Run the “QB” program.
- Select “Create(+)”.
- Click on “Cheque”. Alternatively, you may choose “Expense”.
- Tap on “Payee”.
- Opt for “Bank Account”.
Note: Ensure that you are selecting only that bank account that is used by you for withdrawal of cash.
- Visit the section focusing on “Account Details”.
- View the column for “Account”.
- Provide the information relating to one of the following:
- “Owner’s Equity”
- “Partner Equity”
- Open the column for “Amount”.
- Mention the amount that has been withdrawn.
- Now, use the “Save and Close” button to exit.
How Do I Record a Cash Withdrawal in QuickBooks via My Petty Cash Account?
It will interest you to learn that your petty cash account in QB can enable you in recording cash withdrawals. You can also make this account in the software using Chart of Accounts if you have not already created it. Then you can add the draw account of the owner. After this, a check will have to be added to your QuickBooks petty cash account. Following this, you can open the account and add the amount of cash withdrawal to it.
Learn more about the steps associated with this method to record your cash withdrawal in QuickBooks via your petty cash account.
- Open the menu for “Lists”.
- Tap on “Chart of Accounts”.
- Visit the tab that is titled “Accounts”.
- Click on “New”.
- Choose “Bank”.
- Enter “Petty Cash” as the name of this account.
Tip: You may require additional help to create and set up your petty cash account in QuickBooks. Here, we have come up with a detailed method to do so. Click here to read it right away.
- Press “Save and Close”.
- Now, the draw account of the owner will be added. For this, visit “Lists” one more time.
- Select “Chart of Account”.
- Pick “New” in “Accounts”.
- Then move to “Equity”.
- Tap on “Continue”.
- The account that will be made now will have to be named. The name should indicate that this is the draw account of the owner.
- Then select “Save”.
- After this, go to “Banking”.
- “Write Check” has to be opted for.
- Choose your account for withdrawal.
- Input “Cash”.
- Select “Pay to the Order”.
Note: This option will be selected only when the petty cash account is being used by you.
- Visit “Expenses”.
- Tap on the “Account” option.
- Choose “Petty Cash”.
- Provide the amount that will be withdrawn.
- Ensure that all the required information has been entered by you.
- Press the “Save” tab.
- Move to the tab for “Banking”.
- Click on the option saying “Write Check”.
- View the dropdown and pick “Petty Cash Account”.
- Click on “Pay of the Order”.
- Then provide the name.
- After this, go to “Expenses”.
- Pick your account for adding the withdrawal.
- Then type in the withdrawal’s amount.
- The final step is to choose “Save”.
Tip: Along with recording cash withdrawals, you can also record other things in the software, such as cash sales. We have come up with 2 ways to help you record cash sales in QuickBooks. To know them, you can read here.
How to Record Cash Withdrawal in QuickBooks Desktop?
You can record your cash withdrawal in QuickBooks Desktop when the Lists menu is available. This menu comprises the Chart of Accounts. COA further comprises the Account option. It helps you in adding a new account if you need to. Succeeding this, you can add the amount of cash to your newly added Cash Account.
It should be known that you don’t necessarily need to add a fresh account in QBDT for recording your cash withdrawal. You can directly add it to an existing account.
Note: In the following steps, we have, first, explained how you can make an account in QB Desktop. After this, we have shared the steps to input the cash withdrawal. However, some of you may have already created an account in QuickBooks Desktop and may not wish to add another one. In that case, you can directly skip to how to record cash withdrawal in QuickBooks Desktop. For this, you can read steps 10 to 16.
- Open the menu for “Lists”.
- Go to “Chart of Accounts”.
- Click on the dropdown that says “Account”.
- Use the “New” option given in the dropdown.
Note: The option of “New” in “Account” will help you in making one new account in the accounting software.
- You will be asked the type of account. Select “Cash Account”.
- Press “Continue” and move to the next step.
- Find the “Account Name” option.
- Click on “Cash on Hand”.
- Tap on the “Save & Close” button.
Note: Now your account will have been created in QuickBooks. You can record your cash withdrawal amount in it.
- Select “Banking” and view the menu.
- Go to “Write Checks”.
- Navigate to the section of “Bank Account”.
- From this section, “Cash Account” has to be chosen.
- Start entering the information that has been asked for.
- Include the funds that have been spent by you.
- In the end, use “Save & Close”.
Tip: Prior to saving the cash withdrawals in QuickBooks, we will always suggest that you thoroughly go through the information entered by you. When any values are added, as a part of this information, they should be doubly checked. After this has been done, you can stay assured that the information added will be correctly saved.
How to Record ATM Cash Withdrawals in QuickBooks?
ATM cash withdrawals may need to be recorded in QuickBooks owing to several reasons. In this software, such cash withdrawals can be recorded through the Banking menu. You can move to Transfers and input relevant information in the fields given. Following this step, you can mention the account through which you had transferred the sum as well as the account in which the money has been put into. In the end, you will have to save all of this information. This clarifies how to record ATM cash withdrawals in QuickBooks.
- Go to the “QuickBooks” program.
- “Banking” will be viewed. Select it.
- Head to the option of “Transfers”.
- Type in the date of your transaction in the option of “Date”.
- Touch the dropdown next to “Transfer Funds from”.
- Choose the account for your ATM transaction.
Note: In this step, you are required to choose that account via which money was transferred by you.
- Next, use the dropdown on the side of “Transfer Funds to”.
- Choose your account in which the amount should be transferred.
Note: You can also prefer choosing your QuickBooks petty cash account for this purpose. In case you do not wish to use this account, you can pick any as per your preference.
- In “Transfer Amount”, add the amount of your transaction.
- Select “Memo”.
Note: “Memo” is a field that lets you add a note for making the transaction while recording it in QuickBooks.
- Tap on “Save” to record the added information.
Note: Remembering to press “Save” is an important step. This ensures that your entered information gets saved. As a result of this, you are able to successfully save your cash withdrawals in QuickBooks Desktop.
Remembering your cash withdrawals can become effortless when a record for the same exists in the QuickBooks software. This record can be made by adding your account to the software. In this account, you can mention the amount of the withdrawal and the information will be saved for as long as you wish to. As you were taught here, recording the withdrawals can be possible in QuickBooks Desktop too.
We will suggest you to find out how to record a debit card transaction in QuickBooks for your knowledge. It will also be helpful to learn the way to record your cash sales in QuickBooks.
The record of ATM withdrawals can be added like you record transactions in QuickBooks. Initially, you have to use “Banking” which will take you to the option of “Transfers”. After adding the date associated with the record, move to “Transfer Funds from”. When have filled this field, please switch to “Transfer Funds to”. Again, you need to input the information in it. As you approach “Transfer Amount”, a memo can be created that is associated with the ATM withdrawal.
A user can withdraw cash for several reasons. They can involve both personal and professional reasons. Regardless of this, the amount can be recorded in QuickBooks for accurate accounting. The details of the amount, date of withdrawal, the reason to withdraw, etc., can be added to the software.
In QuickBooks or QuickBooks Desktop, you can open “Lists”. Then you can open COA. Here, please use “Account”. To account for a fresh cash withdrawal, tap on “New”. When you are asked for the type of account, please mention “Bank”. Afterward, you can add “Account Name”. With this, you will be closer to accounting for the cash withdrawal.