How should you manage Petty Cash

Posted on Apr 14, 2013 | 0 comments

Petty cash is often thought of to be a small amount of money that can be ignored or neglected. Do not think of any financial aspect of your business to be something that can be ignored. Petty cash is used for your business to take care of little expenses. Although they can be small at a certain period of time, the overall consumed petty cash of your company could amount to an already huge amount. This is the reason why you should take extreme precaution to manage your petty cash and keep a transparent record of all the expenses you have paid with your petty cash. This will help you see the overall financial state of your company.

Here are some tips to help you:

Receipts

Always keep receipts. However small or unnecessary they may seem, always keep them. They still add to the amount that you have used of your petty cash and a close approximation of all that you have consumed would be better than a rough estimate. It will also save you from the burden of having to think about and recalling every transaction that you have made to be entered to the books.

Access

Petty cash should be readily available but not to everybody. Place it somewhere where only a few people can have access to such as a locked drawer or a cashier box. Give authority for only a few people and give them instructions to only take cash from it when it’s totally necessary and to keep the receipts.

Replenishments

If a part of the petty cash has been used, replace that as soon as possible. It’s best that you try to keep the same amount of petty cash all the time. This will help make you see if the petty cash is almost always used up or just enough for all necessary expenses.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>