How to write a check to petty cash

December 17, at 7:

How to write a check to petty cash

Pinterest By Brian E. So, while petty cash is a small amount of money, it can also be stolen or abused, so it is best to have some rules to handle it.

Reconciling and Replenishing:

Set a reasonable amount for petty cash. Estimate how much you would need to cover small office expenses for about a month. You want the amount to be as small as possible, without having to replenish too often.

Have a set of rules on how petty cash can be spent. Put the policy in writing and give some good examples of what petty cash can be used for — making change, small office supplies, postage, etc.

Have a secure location to keep petty cash. Keep petty cash in a locked location such as a file cabinet or desk drawer. Give access to only one employee. Designate one employee to have responsibility for the petty cash fund.

If every employee has access and funds are missing, it will be hard to know who might be responsible for the lack of documentation or even theft. Require everyone to provide receipts. The designated employee should require employees to fill out a voucher or provide a receipt for the expenses paid from petty cash.

A running log should be kept.

how to write a check to petty cash

Balance and replenish petty cash. When petty cash is replenished, the actual cash should be counted.

how to write a check to petty cash

Adding the cash total to the total expense receipts in petty cash should total to the original amount put into petty cash. They can then cash the check and replenish petty cash. You can reach Brian through www.Petty cash is defined by Wikipedia as a small amount of discretionary cash funds used for expenditures where it is not sensible to write a check because of convenience and the cost of writing, signing and cashing the check.

Accounting and procedures for petty cash

Use the Write Cheques window to enter any purchases paid with Petty Cash with the appropriate expense account. If you have set it up as a sub account of your bank account and are reconciling the main bank account, that is why the entry is showing as a debit and a credit.

Free printable petty cash register is a Microsoft Excel XLS spreadsheet that is designed to be printed out or used as a template electronically.

The petty cash template provides columns for tracking cash amounts, check numbers, purpose, deposit and balance. • Is access to the petty cash fund restricted to the petty cash custodian? • Are petty cash disbursements made upon presentation of approved petty cash payout forms with supporting documentation (e.g., receipts)?

The first time a petty cash fund is established a company writes a check to a designated petty cash custodian for the amount of the petty cash fund. The custodian cashes the check and puts the cash in a . Petty Cash Requisition Form Instructions This form is used to request petty cash for small purchases of less than $, and may be used for travel advances of up to $

How to Set Up and Maintain a Petty Cash Account – Basic Accounting Help