Most of your business expenses are often paid via check or credit card, so that facilitates accounting. However, there are business expenses that are paid by cash like taxis, lunches, gratuity and some office supplies. Hopefully you have retained the receipts for them. Now is the time to organize the receipts and manually enter them into Quickbooks or the accounting application you are using. First you should organize the receipts by reviewing to see which ones are actual business expenses, and also check to see if these were paid by cash. If paid via credit or debit card, those expenses should have already been recorded in your business checking or credit card register. Once that is done, you can enter the receipts into the register of your Petty Cash account and code them by the proper account category such as postage, meals and entertainment, etc.
Plus, I strongly suggest getting a scanner, and scanning in all your cash receipts on a monthly basis which makes it easier at the end of the year.
I was recently alerted to a new web start-up Shoeboxed,that helps you organize receipts online. They also have a new service, Project Mailboxed that will be rolled out in January 2008. With Project Mailboxed,
you'll get a prepaid envelope every month from Shoeboxed. You stuff it with
all your paper receipts and mail it back. They scan the receipts in for you, and
you can access them through your secure Shoeboxed account with all your
From Nichelle Stephens, New York Incubator/Blog Manager.