Cash sales

Bonnie_67

All of my sales are cash which I record as Cash on Hand, Some expenses I pay with cash on hand, some with credit card and some through my bank account. When i record my receipts I allocate the receipt based on how I paid for the purchase.
I can't figure out where I can enter the deposits i made to my bank account as well as payments I make to credit cards and suppliers. How do I reduce the amount of cash on hand and increase the amount of money in my bank account?
I hope this make sense , I'm am learning as I go with a basic understanding of balancing my books (by hand) but this has me stumped.

Thanks,
Bonnie

Bonnie_67

Could someone please answer this for me

JordanD

Hi @Bonnie_67,

When you deposit of cash into your bank account, you will see this on your bank statement as an income transaction for the account. This will increase the balance on your bank account as you have added money to the account. To lower the amount on your cash on hand account, you will want to mark the category of the bank deposit transaction as a "Transfer from Cash on Hand". This will then create an expense transaction for your cash on hand account and will link the two transactions to show the money moving from one account to another.

Bonnie_67

Thank you! I was doing it with udepeosited accounts but this will make
things less confusing

Bonnie_67

I wasn't able to import bank statements from my account for some reason so I have to do this all manually. But either way, thanks again

Bonnie_67

@JordanFromWave

I am still baffled with credit card expenses. Maybe this post will help you understand what I am having trouble with.
When I enter receipts from expenses that I charged on my credit card how do I enter the payment made to these said expenses. Doing a transfer does not work as i have been told to do in the past because I am paying the amount owing to the card in a lump sum and not for each individual transaction therefore, the amounts don't match. When I enter the credit card payment as was a withdrawal from my bank account it is showing as another expense when in actual fact I already incurred these expenses and recorded them under category "business credit card"
Thanks In advance
Bonnie

JordanD

@Bonnie_67 When you upload a receipt for a transaction that was paid via credit card, one thing to note is that you will likely end up with a duplicate (one imported from your credit card statement/ bank connection and one from the receipt upload). I'd first recommend that you merge the two together, or simply delete the bank imported transaction to ensure that the expense is not doubled.

In terms of reconciling the credit card, the best way to think about it is similar to a loan. Effectively, you are borrowing money when you are using the credit card. This means that the individual transactions will be used to show what the transactions are for, however, all the really matters on the Credit Card account is showing that you have repaid for the borrowed amount and the balance that still remains. The transfer will effectively ensure that the expense from the bank account and the income to the credit card are not considered as additional expenses or income, but in fact that they are linked together.