Money always comes and goes when you are involved in a simple business. Paperworks are utilized to ensure that the money is spent properly and goes towards its intended destination. “Follow the money.” as mysterious tipster Deep Throat said in the movie All The President’s Men, paperwork makes it difficult to pull any company shenanigans that could lead its ruin.
There are times though that the funds are so immediately needed that the bureaucracy needed to be crossed to secure said funds are only a nuisance to the overall picture. For smaller transactions, the paperwork could very well be not worth the overall hassle. Surely the resources allocated for such endeavors could be funneled to a more productive one? You may also see sample money receipt templates.
That is what petty cash funds are for. Petty cash is a small collection of onhand funds that are used for smaller purchases or refunds that are not worth the effort for using the more complex procedures of securing money for buying or reimbursements. Petty cash funds are maintained by a custodian to monitor the flow of the funds. Despite the less hassle approach, petty cash funds are still monitored to avoid abuse. You may also see sales receipt templates.
Though the funds involved contain a smaller amount, it could balloon up to a more expensive amount if not used properly. As such, reconciliation of petty cash funds should be done regularly to avoid this kind of predicament. Included on this page are some templates and samples of petty cash receipts to help you in the monitoring your funds.
To set up your petty cash fund, decide on an amount that you think would be appropriate for your business operation. This is dependent on your organization. Issue a check for the appropriate amount and identify this as your petty cash. Place this said amount in a petty cash account or a petty cash box. You should then designate a petty cash custodian. This person is responsible for the releasing and monitoring your petty cash fund. Lastly, create criteria for which petty cash should be released. This helps the custodian decide if petty cash should be released for purchases or reimbursements. You may also see delivery receipt templates.
A petty cash custodian has a lot of responsibilities to ensure that the petty cash is used on the appropriate manner of usage. You may also see free cash receipt templates.
As this person is the custodian of the petty cash amount, it would be more convenient for this said personnel to be the one to cash out the check to be used for the petty cash. You may also see printable cash receipt templates.
A guideline should be established as to when cash should be taken from the funds. The guidelines may decide whether food purchases can be refundable by petty cash or not. It can decide how much distance can be repayable to an employee’s expense on gas when he or she is doing functions for the organization. No matter what, the custodian should always follow the guidelines to avoid a systematic abuse of the petty cash. This should also include a limit on how much money is refundable per transaction. Most companies put the limit of at least 10% of the total petty cash fund. You may also see money/cash receipt templates.
As usage of petty cash involves the company’s resources, receipts should be always be issued. This will help the custodian in the long run for when it is about time to reconcile the total amount of petty cash. The custodian should only disburse the amount requested if and only if proper documentation is met.
When the proper and required documentation is met and the request aligns with that of the guidelines the custodian should disburse the funds. The person should only disburse the exact amount requested by the employee. Additional guidelines might be included for disbursement procedures like prohibiting the splitting of sample receipts to break the limit of releasable amount.
Funds should be reconciled regularly. This is to ensure that the right amount of cash is present in the funds. The custodian must account for the remaining balance along with the total charges released from the receipts. As such this should be equal to the original balance of the cash fund. You may also see doctor receipt templates.
Money constantly flows in a business and as more requests for emergency payments and reimbursements come, so too does the balance of the funds go down. One never knows when additional petty cash is needed. The custodian must always monitor that there is enough money for the fund. Before replenishing the petty cash fund, he must include the required paperwork in his request. This is to ensure that the withdrawals should be accounted for in the income statements and balance sheets of the company.
Before being released, petty cash requests should be screened if they are within the disbursement guidelines. This is to ensure that the funds would be released for appropriate reasons and that the disbursement is reasonable. You may also see salary receipt templates.
Once the request passes the guideline, open the petty cash reserve. This should be the only time that the petty cash container is opened. Otherwise, it should be kept close to avoid theft and other security reasons. You may also see word receipt templates.
Before the cash can be disbursed, the person making the request should fill up a documentation to help track the type of expenditures being made. This voucher could contain the disbursed amount, expense type, date of release, and the name of the person who will be receiving the amount. It is advisable to include receipts for which the amount is being refunded as additional documentation for monitoring petty cash usage. You may also see printable receipt templates.
Once the necessary paperwork has been accomplished, it is time to release the requested amount. Make sure that only the exact amount has been released. Count the money before handing it out. Have the requestor count it as well as to doublecheck the amount released. Also, have the person sign the filled up voucher as proof that the there has been an official request for petty cash and that the custodian did not just make the said request. Keep the documentation as this will be used for the reconciliation of the amount. You may also see receipt formats.
It is advisable to immediately update the petty cash book as petty cash is released. This is to constantly monitor how much cash is left in the funds and should a request to replenish the petty cash fund should be done. You may also see free cash receipt sample.
Like all receipts, a petty cash receipt needs to be filled up with the relevant information for the transaction done. Below are some of the required fields to be filled up on your petty cash receipt. Below are some of the more important parts of a petty cash receipt example. Additional fields might be found depending on the format of your company’s petty cash receipt.
1. Receipt number – To be filled with the sequential number assigned by the petty cash custodian. The receipt number should only be controlled by the custodian. You may also see transport receipt templates.
2. Date – To be filled with the date when the receipt is issued and released.
3. Pay to – To be filled with the name of the petty cash recipient.
4. Amount – To be filled with the amount released.
5. Description – To be filled with a brief report on what the funds were used for. This field must also be specific.
6. Authorized by and date – To be filled with the name and signature of the authorized signer of the account to be charged. This should be handwritten as to avoid forgery. Also, include the date of signing. You may also see paid receipt templates.
7. Received by – To be filled with the name of the recipient of the petty cash. This should also include the date by when this was signed. Like the “authorized by and date” field, this should also be handwritten to avoid forgery. You may also see deposit receipt templates.
There you have it, a quick guide on petty cash, it’s uses and receipts. If you still don’t have a format for your petty cash receipt sample or you think that your current format needs updating, feel free to download, customize and use the templates provided on this page.