Managing Petty Cash

Begin the petty cash system by placing an appropriate amount of cash ($50, $100, $200, etc.) in an envelope (or cash box, drawer). When an expense needs to be paid, cash is taken from the envelope and a slip indicating who took the money is placed into the envelope. Any change and a copy of the receipt from the purchase are placed back in the envelope. Remove the original slip. 

At all times the total of receipts, slips and cash should equal your designated petty cash amount.

When petty cash runs low, simply write a check for the total of all receipts. Cash the check and put the cash in the envelope. This should bring your cash back up to its designated level. Total each category of expenses as shown to the left and code the check accordingly. Staple the receipts and petty cash summary together, indicate the date and check number, and file it in paid bills.

On a monthly basis, send us your Petty Cash Summary.