To set up a petty cash fund in QuickBooks, first create a new asset account, called "petty cash", in the chart of accounts. Next, transfer the amount of cash you would like to have in the petty cash fund asset account. You can do this by crediting the cash account and debiting the petty cash fund account. When the bookkeeper is completing the journal entries in Quickbooks to record the expenses from the petty cash fund, he will take the petty cash fund log, debit the noted expenses, and credit the petty cash fund. Once the petty cash fund becomes low on cash, the bookkeeper will start the process over again by debiting more cash into the petty cash fund account from the cash account.