How to categorize an atm withdrawal?

Hi there, fosterex.

Categorizing an ATM withdrawal brings order to your money management. I'll lay down the steps to help you review and track the entry in QuickBooks Online (QBO).

Beforehand, we need to determine the purpose of the withdrawal amount so that we can allocate it properly within QBO.

If the withdrawn amount is for business expenses, we can manage and track it as petty cash. Beforehand, I suggest creating an account we can use when moving the funds from your bank account:

1. Go to the Gear icon and then select Chart of accounts (Take me there).
2. Click New.
3. From the Account type drop-down menu, choose Bank.
4. In the Detail type drop-down list, select Cash on hand.
5. Enter Petty Cash in the Account name field.
6. The opening balance will be created when you move money from the checking account. If you already have money, add the amount in the Starting date and opening balance field and choose the correct date.
7. Hit Save.

Once done, we can write a check for the ATM withdrawal or record a transfer.

I recommend performing these steps to add a check:

1. Go to + New and then select Check (Take me there).
2. Select Petty Cash as the payee. Click + Add new if not in the list.
3. Add the correct date.
4. Choose the correct accounts (the petty cash account you've added and the bank account you withdraw the money from).
5. Enter the correct amount.
6. Hit Save and close.

You can follow the instructions below if you want to add a transfer:

1. From + New, select Transfer (Take me there).
2. Enter the correct date.
3. Select the correct account (the petty cash account you've added and the bank account you withdraw the money from).
4. Enter the amount transferred.
5. Click Save and close.

For more details, please see this article: Set up and use petty cash in QuickBooks Online.

If this is personal money to use, we can record it as the owner's draw.

Finally, I've added these resources to help you review and match your bank transactions to ensure they're added to the correct category and reconcile your accounts to keep them accurate:

• Categorize online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

You're always welcome to post in this thread if you have other questions about managing the withdrawal transactions. I'll be sure to get back to you.