How to Reconcile Cash Transactions in QuickBooks
If, as I suspect, there’s a large negative balance in the cash account, you’ll need to determine where the cash came from and check with their tax professional about how to book it. It’ll most likely be an equity and current liability account, depending on whether the funds are going to be paid back to the contributor.
If there’s a positive balance in the cash account, then everything’s probably okay. It means they’ve been transferring cash out of the checking account for these transactions, which is perfectly okay. But you should reconcile the remaining balance in the cash account to the actual cash on hand.
In either case, I recommend writing checks for cash payments. You get much better info, such as where the meal was purchased. Just don’t enter a check #.
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