Managing Petty Cash

Purpose

To ensure that petty cash is monitored regularly and not abused

Background

The use of petty cash is restricted to purchase of items required at short notice that cannot be acquired either through the normal ordering system within the required time.

Payments of a payroll nature (salary, allowances, leave, etc.) must be made only through the payroll system.

Scope

All staff

Procedure

Detail your petty cash procedures ensuring that:

• Petty cash is kept in a safe place away from casual access
• funds are adequate for Petty Cash purposes but not excessive
• Petty cash is controlled by one individual (with enough seniority and experience in the company to adequately control the petty cash process)
• Petty cash is reconciled periodically (usually monthly) by someone other than the custodian.
• Attach the receipt to the Petty Cash Voucher and store all the vouchers locked away with the petty cash.
• Cash a cheque to reimburse the petty cash when the money is low.

Related documents

• Cheque Signing and Authority
• Payment Approval (paying For What We Get)
• Purchase Orders (ensuring A Paper Trail Exists)
• Receipt Of Goods and Conformity Of Supply
• How to use bottlenecks in your business to help you write effective standard operating procedures (SOP)
• SOP Software to help you manage your standard operating procedures (SOP)

TKO Business Modeller

Pat Williams, is the creator of TKO Business Modeller & TKO Policy Guides software. Pat firmly believes in the benefit of documenting your business systems. In doing so, a business owner can build the system once, then duplicate themselves over and over again simply by inducting new people into the system.

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