Everyone has heard the saying “take care of the pennies and the dollars will take care of themselves”. When running a business, you must have a system in place that allows for small expenditures. This will help you and your accountant categorize expenses and keep track of the pennies. The most accepted form of tracking petty cash is to have a fund set-up and managed by a designated employee. The petty cash fund is funded by a check issued to it and the cash kept in a safe place. The amount is usually around $100 and, as funds are dispersed, a petty cash receipt is issued to offset the amount dispersed. When the funds get low a check is issued in the amount equal to the total of the receipts and the fund is brought back up to the starting amount.
How to Use the Petty Cash Receipt Template Word Document
- First, fill in customizable company data and save the file. Although this is an internal document, it is a good idea to place your company’s information on it. This gives it credibility.
- Second, set up your numbering system. Having a numbering system discourages fraud by knowing where each receipt has gone.
- Third, set up categories for petty cash receipts. Examples of Categories might be Gas, food or small office supplies.
Tips for Using the Petty Cash Receipt Template Word Document
- First, because this form a written record of funds issued by the company, make sure employees know how the system works. There should be a caretaker who issues the funds and signs the petty cash receipt along with the person receiving the funds.
- Second, use categories that align with your accounting system. Your accountant can help you with this. Most systems have designated numbers for each category of expenditure.
- Third, be sure to require the person receiving the petty cash to keep a copy for their records. This will prevent any misunderstandings if a question arises later.
Paperwork can be a hassle sometimes. This petty cash receipt template will make it easier for you to track the small expenses and make your business run smoother.
Download: Petty Cash Receipt