No More ATM withdrawals – accounting for Petty Cash

Do you think that ATM withdrawals are an expense to your business?  The IRS says WRONG!

Here’s how to make those cash expenses deductible.  Establish a Petty Cash Fund.

1. Write a check to Petty Cash for $200 (or any appropriate amount).
2. Put the cash into a pouch or box.
3. Use cash from the petty cash pouch for purchases, putting the receipt in the pouch.
4. When cash is low add up the receipts and the cash, should total $200.
5. Write a check to Petty cash for the amount of the receipts. Now there’s $200 in pouch again.

For information on how to record the petty cash in your accounting system, check with your accountant or email info@legupaccounting.com