Accounting for cash

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• Accounting for cash
• Accounting for cash

One-off events

For one-off events like AGMs and day trips it is often better to establish a float separate from your general Petty Cash fund. Withdraw the money from the bank, recording the details in the miscellaneous column of your Bank Book.

The reason for having a separate float is that it is often difficult to follow Petty Cash rules to the letter during one-off events – and this can seriously disrupt what had been a well run Petty Cash system. It may, for instance, not be possible to get receipts for many small items of expenditure. You should make a note of all expenditure on Petty Cash vouchers; and try not to put off doing this!

Put the vouchers into a file and keep them for your accounts. Unspent money should be paid back into the bank – not put into the Petty Cash box!

Is Petty Cash compulsory?

Certainly not. Paying by cheque is frequently easier to do and far easier to account for. Don’t run a Petty Cash system for its own sake. If you can make all your payments by cheque, do so!

Personal imprests

It is sometimes easier to issue people with a personal imprest for repeat expenses like travel. Claims can be submitted on an agreed basis – ie. monthly. It should be noted, however, that this system only works if people are happy to have expenses paid through their own bank account.

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Last updated: Mon, Mar 31 2008 - 01:07:56 PM

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