Petty Cash Procedure

This procedure is prepared by [YOUR NAME]. The official company details are as follows:

• Company Name: [YOUR COMPANY NAME]

• Company Email: [YOUR COMPANY EMAIL]

• Company Address: [YOUR COMPANY ADDRESS]

I. Purpose

The purpose of this Petty Cash Procedure Template is to establish a standardized method for managing and reconciling petty cash. This ensures accurate tracking, proper use of funds and compliance with internal financial policies.

II. Scope

This procedure applies to all employees who handle petty cash transactions at [YOUR COMPANY NAME].

III. Definitions

• Petty Cash: A small amount of cash on hand used for covering minor expenses.

• Custodian: The person responsible for managing and disbursing the petty cash.

• Reconciliation: The process of verifying and ensuring that the amount of petty cash spent matches the recorded expenditures.

IV. Procedure

A. Establishing a Petty Cash Fund

1. The initial fund will be set up through an approval from the Finance Department.

2. All requests for setting up a petty cash must be submitted to [YOUR COMPANY NAME] Finance Department via the form "Petty Cash Fund Request".

B. Handling and Security

1. The custodian must ensure the petty cash is stored in a locked drawer or box.

2. Only authorized personnel should have access to the petty cash.

C. Making Payments

1. Payments from petty cash should only cover expenses pre-approved and within the defined limits.

2. Receipts must be collected for every disbursement and attached to the Petty Cash Voucher.

D. Recording Transactions

1. Each transaction must be recorded immediately using the Petty Cash Log.

2. The log should include the date, amount, recipient, purpose, and authorizing person.

E. Reconciliation and Replenishment

1. The custodian must reconcile the petty cash fund weekly or upon reaching a minimum threshold.

2. A reconciliation report should be generated and reviewed by the Finance Department before replenishing.

3. To replenish, submit a completed "Petty Cash Replenishment Form" along with the original receipts to the Finance Department.

V. Appendices

A. Forms and Documents

Form/Document Name	Purpose	Location
Petty Cash Fund Request	To request setting up a petty cash fund	Intranet Document Portal
Petty Cash Voucher	For recording each petty cash payment	Intranet Document Portal
Petty Cash Replenishment Form	For the purpose of replenishing the petty cash fund	Intranet Document Portal
Petty Cash Reconciliation Report	To report and reconcile petty cash usage	Intranet Document Portal

B. Regulatory Compliance

Ensure all petty cash procedures comply with local financial regulations and policies outlined by [YOUR COMPANY NAME].

The procedures outlined herein are subject to review and updates as necessary, with revisions communicated through regular channels.

Procedure Templates @ Template.net