Cash Expenditures
Cash spent in your business needs to be accounted for if you want to
record all business expenses in a given year. There are at least two
ways to do this: write yourself reimbursable checks or keep a petty cash
record.
Cash spent in your business needs to be accounted for if you want to
record all business expenses in a given year. There are at least two
ways to do this: write yourself reimbursable checks or keep a petty cash
record.
If you choose to pay yourself back with a check, simply keep track of
all cash receipts and total them weekly, biweekly or monthly, depending
on your volume of expenses. Keep a log of each category of expense, for
tax purposes and write yourself a check for the total. Write cash
reimbursable in your check register to differentiate this from taxable
income. Alternatively, you can keep a petty cash record by writing a
check to petty cash and keeping a log of each expense paid out of petty
cash.
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