Free Petty Cash Voucher Template Excel Petty Cash Voucher

By giving this responsibility to one custodian, it means that you will retain internal control over the money. A petty cash reconciliation is a formal review of petty cash records. The intent of this activity is to see if there have been any undocumented disbursements.

  • If you’d like your company logo as your receipt header, simply drag and drop an image element into the PDF and upload your logo.
  • By keeping a small amount of cash on hand, you can make purchases as necessary and submit the receipts.
  • So petty cash refers to a small sum of money set aside for trifling or little purchases, as opposed to major expenses or bills.
  • Even if you think petty cash transactions aren’t important, they must be recorded.

The over or short account is used to force-balance the fund upon reconciliation. The petty cash account should be reconciled and replenished every month to ensure the account is balanced and any variances are accounted for. The accountant should write a check made out to “Petty Cash” for the amount of expenses paid for with the petty cash that month to bring the account back up to the original amount. The check should be cashed at the company’s bank and the cash placed back in the petty cash safe or lock box. When the cash balance in the petty cash fund drops to a sufficiently minimal level, the petty cash custodian applies for more cash from the cashier.

Happay’s petty cash management solution reduces the risk of fraud and theft by eliminating the need to keep large amounts of cash. Ultimately, you can easily and securely manage and control your petty cash expenses. Once the form is filled out, the person taking the money should sign it and submit it to the person responsible for the petty cash fund. The person responsible for the petty cash fund then reviews the voucher and verifies if the amount requested is within the budgeted amount. They ensure petty cash is used for legitimate business expenses, not personal expenditures. A petty cash voucher typically includes details like the date, the amount of money spent, the reason for the expenditure, and the signature of the person authorizing the expenditure.

Free Sample Cash Voucher Templates Examples

Columnar petty cash books and imprest petty cash books are two types of petty cash books. A columnar petty cash book is a record of transactions maintained in a columnar format. In contrast, an imprest petty cash book records transactions in a ledger format. Petty cash is the money that a business or company keeps on hand to make small payments, purchases, and reimbursements. Either routine or unexpected, these are transactions for which writing a check or using a credit card is impractical or inconvenient. In the financial world, it also refers to a company’s highly liquid assets—funds in checking or other bank accounts, money market funds, short-term debt instruments, or other cash equivalents.

  • Balancing the petty cash account usually occurs when the fund needs to be replenished.
  • After a designated interval—usually, the same time each month or week—it’s time to reconcile or balance the petty fund account.
  • Use the PDF Editor if you want to edit and modify the content of this template.
  • In other words, petty cash funds are readily available but not usually accessible.

Though not literally cash, it’s money that can be easily and quickly accessed, which is why it’s “on hand.” Cash on hand is any accessible cash the business or liquid funds have. It can be in the form of actual money, like amounts you haven’t yet deposited in the bank or smaller bills and coins that you keep in the cash register to make change for customers. When the petty cash fund is replenished, the completed petty cash vouchers provide the documentation for the replenishment check. A petty cash voucher is a document that allows an employee of a small business to withdraw small, nominal sums of money for various purposes. To keep track of the expenditure it is best to attach the receipt to the voucher.

Then, as cash is disbursed from the petty cash box, the vouchers are essentially swapped for cash. Thus, at the end of the month, the total amount in the petty cash box should still equal the balance at the beginning of the month – except that now the total is comprised of both cash and vouchers. Approving petty cash vouchers is vital to managing your company’s finances. It is important to have a proper system to ensure all payments are authorized and documented properly. One of the important aspects of the approval process is that it must be consistent. The petty cash custodian should know the process and the criteria for approving petty cash transactions.

Download Petty Cash Voucher Template

We can tract the total cash flow easily by looking at the total balance of both columns. In order to prevent any risk of error, all transactions must record during the day it occurs. The petty cash must keep in a proper locker in order to prevent any thief or miss place which can lead to the loss of company assets.

Expense Voucher

The pad should have at least 100 vouchers and should be bound together. Throughout the month, several payments are made from the petty cash account of the Galaxy’s Best Yogurt. Start by calculating the petty cash account opening balance to do the reconciliation. The term refers to a set amount of cash you’ve placed in a secure location, typically a safe, lockable box or drawer.

Petty Cash Voucher Free

This template consists of a scenarios with a few instructions on the top and a table below the instructions to document your expenditures. It lets your add amount, description, account, department, date and many deducting education expenses in 2020 more details quickly. When dealing with petty cash, keeping accurate records of all transactions is essential. This will help you keep track of your expenses and ensure that your balance is not too low.

How Do You Balance Petty Cash in Accounting?

The English word “petty” derives from the French petit, which means “small” or “little.” Likewise, “petty” means minor or insignificant. So petty cash refers to a small sum of money set aside for trifling or little purchases, as opposed to major expenses or bills. Commercial transactions are increasingly cashless—even at small retailers and restaurants, where purchases traditionally have relied heavily on coins. It allows you to record all the income and expenditure for petty cash and check it balances.

Step 3: Input Necessary Data to Set up Voucher Format

A seller gives a customer a receipt for a purchase, and a seller or contractor provides an invoice for their work or goods provided to a customer. You can ensure your organization is not overspending on items that may not be necessary. The use of these vouchers is relatively straightforward, and the information can be used to help the company manage its budget and finances more effectively. After a designated interval—usually, the same time each month or week—it’s time to reconcile or balance the petty fund account. This sum is the total withdrawn from the account during that time period.

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