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Booking Petty Cash / Paid Out Transactions

Nobody loves petty cash. But it’s a reality of restaurant operations, so Garde gives you a few solid ways to handle it cleanly. Here are three approaches, ranging from the most controlled to the simplest.

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    Using the POS - Paid Outs Expensed by Receipt in Accounting System

  2. ​
    Using the POS - Paid Outs Expensed by POS, Receipts not posted to Accounting

  3. ​
    Avoiding the POS - Cash on Hand

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1. Using the POS - Paid Outs Expensed by Receipt in Accounting System

This is the most thorough option. Using Paid Outs in the POS settles your cash transactions daily by decreasing the expected cash on hand. The catch? Tracking those Paid Outs can get tricky since most POS systems aren’t set up with every possible expense category. The workaround is straightforward: use Garde to track both the POS Paid Outs and the receipts by creating a clearing account in your accounting system. To track the cash:
  • In your POS: set up one Paid Out button.
  • In your accounting system: create a “Paid Out” account on your Balance Sheet as a Current Asset (call it whatever you like).
  • In Garde: book all Paid Out transactions from the POS to this Current Asset account.
To track the expense:
  • In Garde: create a “Petty Cash” payment type.
  • In-house: tell managers to photograph their receipts and write “Petty Cash” on each one.
  • In Garde: the expense gets categorized based on whatever the receipt is for — Produce, NA Beverage, Repairs, etc. — but the payment posts to the “Paid Out” Current Asset account.
Reconciliation: If managers submit all their receipts for paid outs, that Current Asset account stays balanced at $0. If someone takes cash without posting a receipt, the account goes negative. That makes it easy to spot missing receipts at a glance. And if you want to see total petty cash usage, just pull up this account or check the Orders page in Garde for transaction counts and amounts.

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Here’s the step-by-step

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Step 1: Set Up Your POS and Accounting System

Make sure you have one simple “Paid Out” button in your POS. The idea is that cashiers use this single button for any cash paid out — whether it’s for lemons or emergency supplies. The detail gets captured later by the receipt. In your accounting system, create a “Paid Out” account on your Balance Sheet as a Current Asset (any name works).

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Step 2: Configure the Payment Account in Garde

Now you’ll link everything together on the Payment Accounts screen.
  1. Go to Accounting > Payment Accounts.
  2. Find the “Petty Cash” line.
    • Accounting System Account: Click the dropdown and select your Current Asset / Paid Out account. This maps the payment account for proper export.
    • Account Type: Leave this as Other.
  3. Click Save Changes.

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Step 3: Train Your Team on the Daily Workflow

This setup only works if your managers follow the process. Fortunately, it’s simple:
  1. Take cash: A manager needs cash. They ring a “Paid Out” in the POS for the exact amount taken (e.g., $40.00).
  2. Make the purchase: They go buy what’s needed. They must get a receipt.
  3. Submit the receipt: They write “Petty Cash” clearly on the physical receipt and snap a photo to upload to Garde. That tells our team to use the Petty Cash payment account.

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How It All Works Together

  • When the POS “Paid Out” syncs, it debits the Petty Cash account (increasing its balance).
  • When Garde processes a receipt marked “Petty Cash,” it credits the Petty Cash account (decreasing its balance) and debits the appropriate expense account (e.g., “Produce” or “R&M”).

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2. Using the POS - Paid Outs Expensed by POS, Receipts not posted to Accounting

Another route: set up one or more buttons in the POS that map through Garde’s sales mapping directly to one or more expense accounts. This way, any cash pulled from the drawer gets expensed immediately — no receipt required. However, if a receipt does get posted through Garde, make sure it is not exported to your accounting system. Otherwise you’ll double-book the expense. The trade-off here is that if someone uses a Paid Out but doesn’t post the receipt in Garde, there’s no balancing account. Your expenses will be off between accounting and Garde at month-end. If your petty cash usage is light, this might be the simpler path.

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3. Avoiding the POS - Cash on Hand

A third option is to skip the POS entirely and keep an in-store petty cash fund. Here’s how it works: the store cashes a beginning balance check — say $300. Managers spend from that fund and submit their receipts (marked as petty cash) into Garde. Garde expenses them to the right categories, and the payment account maps to “Petty Cash” as a Current Asset on the Balance Sheet. When the fund runs low, the store writes a check to replenish it — just make sure to let the accountant know the check is for petty cash replenishment. If all receipts were posted to Garde, the replenishment check should bring the Current Asset account right back to the starting balance.
We know this can get a bit tangled. If you’d like to talk it through with a real person, reach out to us at contact@garde.app and we’ll connect you with an accounting specialist who can help you pick the best approach for your organization.