What Is the Employee Petty Cash Account?
It is a financial account used to track amounts given to a specific employee to perform work-related tasks, such as purchasing supplies or covering business expenses.
This account is part of the Current Assets in the Chart of Accounts and is affected by manual journal entries and any financial transactions made under it.
You can create an Employee Petty Cash account and add sub-accounts under it for each employee who receives an advance.
💡 Example:
If you own a business and have an employee responsible for purchasing daily supplies, the amount you give them should be recorded as a manual journal entry under their petty cash account.
When the employee uses this amount for expenses or purchases, add the related invoices and payment details to the platform. The system will automatically generate the journal entries based on the transactions you record.
These steps help streamline tracking and documenting all financial operations.
Add the Employee Petty Cash Account in the Chart of Accounts
Go to Accounting > Chart of Accounts.
Click New Account.
Select Parent Account: Current Assets.
Edit the account code if needed.
Enter the account name: Employee Petty Cash.
Add a description (optional).
Click Save.
The account will be added immediately.
ℹ️ Note:
If you link the petty cash account to a payment method and then add detailed sub-accounts under it, the existing link will be removed. You will need to reconnect it again.
Add a Detailed Account for Each Employee
In Chart of Accounts, go to Assets > Current Assets.
Open the petty cash account.
Click the three dots (⋮) next to the account.
Select New Sub-Account.
Enter the account name (e.g., Petty Cash – Ahmed).
Add a description (optional).
Click Save.
The sub-account will be added immediately.
Add the Petty Cash Amount (Manual Journal Entry)
(Example: Paying SAR 1,000 to employee Ahmed from the cash register.)
Go to Accounting > Journal Entries.
Click New Journal Entry.
Add the basic details:
Select the first account and enter the amount in the Credit field.
Select the second account (employee petty cash) and enter the amount in the Debit field.
Add a description and attachments (optional).
Click Save.
Save options:
Save & Print: The entry is saved and the print page opens.
Save as Draft: Save the entry and continue later.
Link the Petty Cash Account to Payment Methods
Go to Settings > Payment Methods.
If the payment method already exists
Click the edit icon (🖋️).
From the Linked Account field, select the petty cash account.
Click ✔️.
Click Confirm.
If the payment method is not added yet
Click Add Payment Method.
Enter the payment method name (e.g., Petty Cash – Ahmed).
Select the payment method type.
Choose the petty cash account.
Add a description (optional).
Click ✔️.
ℹ️ Note:
The purpose of linking is to document all financial transactions according to the payment method used.
If you select Cash, the default account Cash on Hand will appear and cannot be changed.
If you select Card or Other, you can manually choose the petty cash account.
Use the Linked Payment Method
(Example: Adding an expense)
Go to Accounting > Expenses.
Click Expenses > New Expense.
Choose Single Expense or Multiple Expenses.
Enter the expense name and date.
Select the payment method (e.g., Petty Cash – Ahmed).
Complete the expense details.
After the expense is added, the amount will be deducted from the employee’s petty cash account in the Chart of Accounts.
Manage the Petty Cash Account
Edit the Account
Go to Accounting > Chart of Accounts.
Search for the account name or code.
Click the three dots (⋮).
Select Edit Account.
Update the required information.
Click Save.
Archive the Account
Go to Accounting > Chart of Accounts.
Search for the account name or code.
Click the three dots (⋮) next to the account.
Select Archive Account.
Click Archive Account to confirm.
The account will move to the archived section.
⚠️ Important:
You cannot archive accounts with balances — the balance must be cleared using a manual journal entry before archiving.
The account cannot be used until restored.
Any linked payment methods will be unlinked and automatically re-linked to the default accounts.
FAQs
Can I link the petty cash account to multiple payment methods?
Yes, you can.
Can I delete the petty cash account after adding it?
No. Accounts cannot be deleted, but they can be archived.