They’ll be in charge of handling and disbursing petty cash and ensuring that the petty cash fund is used for its intended purpose. They’re also responsible for the safekeeping of the physical cash and possess the key to the lockbox where the cash and receipts are kept. With a petty cash fund in place, you can pay for small expenses like postage stamps, office supplies, office food and drinks, fuel expenses, parking tickets, and other unpredictable expenses. Any expense that’s too small to write a check for can be paid with cash from the petty cash fund.

What is a VAT receipt?

There may be several petty cash locations in a larger business, probably one per building or even one per department. To replenish the fund, write a company check to “Petty Cash,” cash it and add the money to the box. The receipts and petty cash reconciliation sheet go to the bookkeeper for entry into the accounting system.

Replenishment is required periodically, as cash payments from the petty cash box are used to pay for incidental expenses. At this time, the person who provides cash to the custodian should examine the vouchers to verify their legitimacy. The transaction that replenishes the petty cash fund is recorded with a compound entry that debits all relevant asset or expense accounts and credits cash. Consider the journal entry below, which is made after the custodian requests $130 to replenish the petty cash fund and submits vouchers that fall into one of three categories.

• Some minor expenses that are crucial to the operation of a business form a part of this voucher.
• For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.
• Based on the information above, fill out the fields to record the expense.
• A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements.
• This can take a few days to process which means the employee will have to wait until he is paid.
• Finally, surprise petty cash counts should be made to maintain good internal control over the fund.

Definition of Petty Cash Voucher

A petty cash voucher is a document containing the information required to justify taking and spending any money from the petty cash jar. These documents make up part of the records inside a petty cash book , and are most often used in small businesses. It is traditionally used for business-related expenses like office supplies.

Step 2: Establish the Petty Cash Fund Balance

• Proper documentation, in the form of petty cash vouchers can provide that all-important clarity on what’s actually going on.
• A petty cash voucher is usually a small form that is used to document a disbursement (payment) from a petty cash fund.
• They help track expenses, support reconciliation, and prevent misuse of petty cash funds.
• The petty cash custodian will keep all petty cash items inside a lockbox.
• The custodian will maintain and document all expenses from the petty cash.
• By implementing a petty cash voucher system, you can effectively track expenses, enhance financial control, and simplify the accounting process.

In most companies, there are many occasions when a small amount of cash must be spent at short notice. Here is an outline of the Cash Voucher and what kind of information it should represent. Sign up to receive more well-researched small business petty cash voucher articles and topics in your inbox, personalized for you.

Free Petty Cash Voucher Templates

He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University. Our team of experienced writers has created a wide range of templates for common letters, including recommendations, resignations, and cover letters.

A petty cash voucher is a standard form used as a receipt whenever cash is withdrawn from a petty cash box. It is a physically small form, since it must fit within the petty cash box or drawer. It is classified as a source document, since it is an original document that contains the details of a business transaction. Source documents are critical to auditors, who use them as evidence that recorded transactions actually occurred. Petty cash vouchers provide documentation for disbursements of cash from the petty cash fund. They help track expenses, support reconciliation, and prevent misuse of petty cash funds.

How to record petty cash in accounting?

Visit What is a Petty Cash Voucher for more information and an example of a completed voucher. However, developing your own petty cash voucher template is recommended for every company. This way, your finance department can ensure that the information they need is instantly accessible, and the document isn’t filled with confusing parts or data that you just don’t need. A Cash Voucher Template is a standardized document used to record and authorize cash transactions, such as petty cash disbursements, reimbursements, or cash advances.

What is your current financial priority?

A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. Petty cash should be part of an overall business accounting system that documents how your business moves funds between one account and another and how it spends its money. A petty cashier might be assigned to issue the check to fund the petty cash drawer and make the appropriate accounting entries. When a petty cash fund is in use, petty cash transactions are still recorded on financial statements. The journal entry for giving the custodian more cash is a debit to the petty cash fund and a credit to cash. A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements.