How to setup cash in hand account?

I’m trying out Bullet and noticed that I can only create Bank account or Credit Card type of accounts.
How will I record manual payments to my invoices when I get paid by cash?
Also, how do I record personal expenses / withdrawals from the Bank account? I want the to be “gone” from Bullet but they are not expenses. 

1 answer

Peter Connor Staff December 7, 2015

When you’re logged into Bullet you can click on the (?) and you’ll get instant chat support. But, I’ll answer your questions here. 
Cash Payments:
It doesn’t really matter how the money comes in, just what bank account it hits. If you’re running a retail business we advise retailers to create a line item on a daily invoice for each payment type, credit card, cash etc. 
If your talking about a Petty Cash account, you can just create a bank account called Petty Cash. When you want to topup the Petty Cash balance just use a bank transfer to move money from one account to another. 
Record Personal Expenses
If you’re a limited company, the only way you can take money out of the business is via Expenses and Wages. You can do this in our payroll app. Expenses are automatically added onto Payroll when you’re entering the bill/receipt just select yourself as the payee and Bullet will handle the rest. 
More information on Limited Companies here
If you’re a sole trader, then expenses don’t get paid back to you as you are the business whereas with a limited company you’re an employee of the business.
As a sole trader you simply collect all the business receipts/bills over the year and claim them off your tax. The “company”, doesn’t reimburse you – that’s only for limited companies. 
More information on Sole Traders here and more information on drawings here
Hope that helps. 

  1. It certainly helps, I'm still confused about cash payments though.
    I mean payed by cash and stays as cash (not lodged to any bank account).
    How would I record that?
  2. Peter Connor December 7, 2015
    Well it has to to hit a bank account. If it's in cash and not lodged then it's "black market".
  3. I'm talking about a payment that is linked to an invoice. Invoice is always first, then I take payments on it.
  4. Peter Connor December 7, 2015
    Ok you should still deposit the money in your account makes it cleaner for reconciling your accounts (matching the bank account with your business accounts).

    It's the key thing revenue look for, that they match. Invoice out, money in.


Please login or Register to Submit Answer