Recording Cash Transactions

I just bought Quicken 2018 for mac/pc for  the purpose of helping manage my aging mother's finances, keep track of her spending and make a budget.

My question is about tracking cash spending. My mother likes to use cash. So if I link her checking account to the quicken account, it will show a record of withdrawing cash. But how do I record what she used that cash for, without messing up the balances from manual transaction recording. 

Example, she takes $100 cash out, spends $20 on taxis, $50 on food. How do I keep track of this and still have accurate balance in her checking account?

Comments

  • splashersplasher SuperUser ✭✭✭✭✭
    edited October 2018
    Create a cash account, I called mine, Pocket Cash, and track all of my important/tax related cash purchases in it.

    When you make the withdrawal from checking, make it a transfer from checking to the cash account.
    Since it is a transfer, it will be neither income or expense and neutral in all reports.
    -splasher  using Q since 1996 -  QW 2015, 2016, 2017 & Subscription  -  Win10
    -Questions? Check out the  Quicken Windows FAQ list

  • Jeremy StovinJeremy Stovin Member
    edited December 2018
    OMG. I am so stupid. That is brilliant and obvious. Thank you!
  • splashersplasher SuperUser ✭✭✭✭✭
    edited June 2018

    OMG. I am so stupid. That is brilliant and obvious. Thank you!

    As I wrote, I don't track every cent, just the bigger stuff or stuff with tax implications, so every once in awhile, I reconcile the cash account by counting everything in my and the wife's wallets and Q will enter an adjustment with Misc for the category.

    Don't feel stupid, I didn't have one either for quite a few years and then I made some cash charity donations that I needed to track and I created "Pocket Cash".
    -splasher  using Q since 1996 -  QW 2015, 2016, 2017 & Subscription  -  Win10
    -Questions? Check out the  Quicken Windows FAQ list

  • LucilleLucille Member
    edited June 2018
    Get her a credit card with a limited maximum credit limit and let her use that instead of cash.

    That way you can download all her transactions and see EXACTLY where every penny goes.

    However, that being said, my wife makes occasional smallish ATM withdrawals from our checking account to purchase odds and ends from time to time.  

    I don't track any of those cash purchases because 1) I don't care where she spends it 2) It's a small amount 3) None of the transactions ever have any tax implications.  

    I just categorize it in the checking account as ATM Withdrawal and leave it at that.

    But I can certainly understand the desire to track mom's cash expenditures.  
  • Vic SmithVic Smith Member
    edited June 2018
    splasher said:

    Create a cash account, I called mine, Pocket Cash, and track all of my important/tax related cash purchases in it.

    When you make the withdrawal from checking, make it a transfer from checking to the cash account.
    Since it is a transfer, it will be neither income or expense and neutral in all reports.

    Yes, I’ve created a cash account, which gets funded via a checking acctount. As long as the checking account-to-Cash account deposits are recorded as Transfer ; and all transactions within the Cash account are recoded as split/non-split expense transactions, expenses should be ok & found via reports later in year. If you want to , you could also restart a monthly bakance of Cash by making a end-of-month adjustment (Transfer) to offset the balance to zero.


    Its kinda like a problem I have recording a elderly friend’s Medicare bills. The doctors take so long to invoice, I set up a Liability account ( Pending Med Bills ) & post doctor visits, as they occur, by date. When dr invoices arrive, I check Medicare.gov site and link Dr visits dates & Medicare ckaim #, then post charges and discounts for net cost. After totals agree with Medicare CMS statements, I pay Dr bill.


    If payment is by check, I MOVE the transaction in the Pending account to checking; if payment is by credit card, I MOVE the Pending transaction to thr credit card account.


    This may at first appear somewhat confusing, but its always balanced to patient Medicare paperwork, and has been helpful in reconciliation of medical billing disputes .
  • jacobsjacobs SuperUser ✭✭✭✭✭
    edited June 2018

    OMG. I am so stupid. That is brilliant and obvious. Thank you!

    I do the same as splasher, but I have separate Cash accounts for myself and my wife. We find that makes it easier for us to reconcile and recall missing chunks of cash. I don't care about documenting every soda or snack, but if we go out to a cash-only restaurant for dinner for $100+, I like to record larger spending as part of tracking our expenses (even though there's no tax issues). It does sometimes lead to some interesting pondering about where I spent money since the last time I reconciled my cash account!
    QMac 2007 & QMac Subscription • Quicken user since 1993
  • Rocket J SquirrelRocket J Squirrel SuperUser ✭✭✭✭✭
    edited June 2018

    OMG. I am so stupid. That is brilliant and obvious. Thank you!

    Great idea to have separate cash accounts. Being a squirrel, I do tend to account for every nut. Mrs. Squirrel only married into the Squirrel family, and doesn’t keep such close track of her nuts. So we have only one cash account, which sometimes gets reconciled with “unknown cash spent”.
    Quicken user since version 2 for DOS.
    Now using QWin Premier subscription version on Win7 Pro x64.
  • Arctic Hare (H&B 2019 Canadian)Arctic Hare (H&B 2019 Canadian) SuperUser ✭✭✭
    edited June 2018

    OMG. I am so stupid. That is brilliant and obvious. Thank you!

    I have a category for cash withdrawals, aptly named "cash withdrawal". My wife is the main user of this category of non-specific spend. In cases where I know where a chunk of the money was spent, I will go back to a past "cash withdrawal" transaction and make it into a split and reassign a portion to something specific. For example, if my wife or I used $50 from our wallet to pay the babysitter, I would go back to a past cash withdrawal transaction (of, say, $80) and convert it to a split and assign $50 of it to Kids - Babysitting and leave the remaining $30 assigned to the unspecific cash withdrawal. Our budget allows for an amount of unspecific cash withdrawal spend.
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