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huggytree
04-17-2010, 10:21 AM
i carry a few hundred in petty cash that i use to pay people to help me carry and lift things. I am a 1 man company and I have to move large water heaters and whirlpool tubs. I typically offer $50 cash to whom ever is on the jobsite to help me. (roofer/ sider/ carpenter/ etc)...or i pay a relative or friend to show up and help me lift...

were not talking thousands here...just a couple of hundred a year...when i withdraw $ from the company accounts i just call it petty cash....is there anything different i should be doing?

Evan
04-17-2010, 09:59 PM
I'd write a receipt. If you're giving this to contractors, it is considered income to them, and it should be included in the 1099.

mporgsoft
05-23-2010, 09:22 AM
You cannot expense the cash until it is spent. So on the withdrawal date you still have the money. Just keep a log of when the money is actually paid and expense it as so. I do not think you will have any problems as all companies have some sort of petty cash.

Evan
05-30-2010, 02:49 PM
You cannot expense the cash until it is spent. So on the withdrawal date you still have the money. Just keep a log of when the money is actually paid and expense it as so. I do not think you will have any problems as all companies have some sort of petty cash.

Petty cash is an asset on the balance sheet, so it would not be an expense. Once an expense is incurred, and cash is paid, it is reduced accordingly.