Purpose of the Policy
Petty cash should be used to pay for small business expenses up to $100 where payments through accounts payable or credit card are not justified or appropriate.
Issuing Petty Cash
Petty cash vouchers must be completed before any cash is taken from the petty cash float.
Only up to $100 can be disbursed at any one time.
All petty cash vouchers issued must be approved by CFO.
Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned to petty cash with any balance of monies unspent.
All completed vouchers must have the following details included:
- issue date of voucher
- name of person issued the voucher
- amount of monies disbursed
- details of expense
- tax invoice or receipt
- signature of approval person
Reconciling Petty Cash
Petty cash float is to be reconciled monthly. This is the responsibility of CFO.
All petty cash expenditure must be entered into the financial system once the petty cash has been reconciled.
The balance of monies and vouchers must equal the petty cash float amount before reimbursement can be made.
Reimbursement of petty cash will be authorised by CEO.