Example Of Petty Cash Procedures For Accounting Manual
|
Make the amount of petty cash funds available as small as possible.
Keep petty cash locked in a secure drawer or box.
Number petty cash vouchers consecutively.
Have two people responsible for petty cash. A primary custodian and secondary custodian. As responsibilty is transferred
between the two make sure that cash and vouchers are counted to reconcile the amount of funds.
Before reimbursing the petty cash fund the person responsible for writing the check should verify all cash and vouchers on hand.
Perform periodic reviews by a manager reconciling the account to make sure that the amount balances and that all vouchers are appropriate.
Ensure all vouchers reimbursed have a receipt for proper documentation of purchases as possible. When not possible this should be noted on the voucher along with the reason. Review regular issues with inability to provide receipts.
Define which expenses are appropriate for petty cash and which are not.
Set a maximum amount limit for the distribution of petty cash (i.e. $100).
Provide appropriate time for funds to be replenished when a predetermined amount has been reached (i.e. 20% of total fund).
Report cash shortages or overages immediately and return account to balance with appropriate accounting entries.
If the total amount of the fund needs to be increased or decreased this should be reviewed by a non handler in a management position.
Create a petty cash policy document that is provided to and signed by all employees so rules are clear and enforced.
|
|
|
