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.
- Write a check to Petty Cash for $200 (or any appropriate amount).
- Put the cash into a pouch or box.
- Use cash from the petty cash pouch for purchases, putting the receipt in the pouch.
- When cash is low add up the receipts and the cash, should total $200.
- 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 firstname.lastname@example.org