Customer petty cash accounts

I have a customer who puts petty cash into my account for expenses that i need to purchase for them. I have them set up as a Liability account. How can i print off a monthly activity report to send to them with receipts.

I think the best way to handle this is:

  1. Create a custom control account named something like Current liabilities. Designate it as a liability account. You can also add things like credit card accounts to this control account. (Or if you think this will happen frequently, name the account Customer petty cash advances.)

  2. Create a new account under Cash Accounts named something like Petty cash advance from X. Assign that account to the new custom control account. Now, the amount you owe your customer will show up on your balance sheet as a liability, included in Current liabilities.

  3. When you purchase an item for this customer, Spend Money within the Cash Accounts tab, in the Petty cash advance from X account. (You will also be able to Receive and Transfer Money since this account is under Cash Accounts tab.)

An alternate way to do this is simply to activate the Billable Expenses tab. When you spend money from your own accounts, allocate to Billable expenses for the customer involved. At the end of the month, invoice the expenses by clicking on the Uninvoiced amount for this customer in the Customers tab, checking applicable items, and creating a new sales invoice. In fact, this seems to me the more professional approach, as is it uncommon for a customer to hand over unsecured petty cash and expect you to account for it.

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Thank you I have had a look at both ways, and the billable expense is definitely the better option for me.