Free Petty Cash Voucher Template in Word Doc & Excel

There is no need to make an entry to the petty cash account because it still shows a balance of $100. But petty cash vouchers can help alleviate some of the stress that comes with having a cash system for business expenses. By completing this information, the voucher provides a clear record of the petty cash transaction for accounting, reconciliation, and auditing purposes. 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.

A petty cash fund is a small amount of cash on hand, usually less than $500, used to cover incidentals or petty expenses. Accounting for petty cash can be done either manually, since it only deals with small expenses, or made easier with bookkeeping software and employee expense cards. Some organizations use a separate cash register for the petty cash, and others just track the transactions on ordinary receipts or invoices. In a simple system, all petty cash expenditures are documented as they happen. The total of these costs is added to the petty cash account monthly, and the monthly amount is entered into the General Ledger as an expense.

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A petty cash fund is a small fund whose purpose is to make small disbursements of cash. When there’s a discrepancy between the amount inside the petty cash fund and the total amount listed on petty cash slips, it’s clear that there has been an error somewhere along the way. A petty cash voucher is usually filled out before purchase, so an employee can be credited with the exact cash amount to go and buy what they need. Suppose Emily, an employee in ABC Corporation, needs to buy some coffee and snacks for an unexpected meeting with clients. 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.

How to record petty cash journal entries?

But, it’s not like the workers can use petty cash and ask for another payment every month. The finance department wants the employees or those in charge of the petty cash flow to keep records of all the expenses made from this cash. With a Petty Cash Voucher, it is quite easy for the employees to save the record of all the expenses and payments made with Petty Cash. A petty cash fund is generally kept so that employees of a business can make small purchases without having to requisition money, use a company credit or debit card, or have a check cut. Petty cash is a current asset and should be listed as a debit on the company balance sheet. There might be a petty cash fund, which can be a drawer or box, in each department for larger corporations.

A petty cash voucher allows you to track small daily purchases and expenses that are typically too small to process through the normal accounting system. It will be helpful for your company to have a system for tracking these small purchases. When people need to withdraw money from the petty cash expense account, they fill out the voucher. They need to provide information about the amount of money taken, personal information, and a legitimate reason.

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Before you find out the importance and key role of a Petty Cash Voucher in an office, you need to understand how the petty cash system works. Generally, when a department makes routine expenses daily, they are required to keep the receipts and deposit them to the finance department with the cash demand voucher. This can take a few days to process which means the employee will have to wait until he is paid. A petty cash system helps businesses pay small expenses quickly without recording each transaction. It is a separate fund of cash that is set aside to pay for supplies or other low-dollar expenses.

Petty Cash Voucher

The vouchers are attached to the journal entry as evidence of the underlying transactions. Thus petty cash voucher templates are a great way to keep track of your daily business expenses. These serve you as a record or entry to complete your expense sheet in the end of the month or a particular period. Find petty cash voucher template online and keep record of all your petty cash expenses.

A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing. Financial accountants (and independent auditors) are generally not concerned with petty cash because of the immateriality of the amounts. To accomplish the reimbursement, the treasurer’s office provides the requested amount (by check or currency) to the custodian. Here are 14 Free Petty Cash Voucher Templates created to help you in your day-to-day tasks in MS Word format.

• A petty cash fund is a convenient method to pay for small business transactions such as postage, delivery fees or emergency office supplies.
• The petty cash voucher is one of the most important documents for an organization.
• It’s to cover ad-hoc expenses that would be inconvenient to write a cheque for.
• Approving petty cash vouchers is vital to managing your company’s finances.
• Petty cash funds are one of the most important parts of finance of any business.

• The IRS requires receipts for all expenses over $75, but it is a good habit to get receipts for every petty cash transaction, no matter how small.
• For example, you might send an employee to pick up office supplies, like staples or printer paper.
• There are various other details such as date of expiry, limitation of purchase and other terms and conditions mentioned either at the bottom or at the back of the voucher.
• 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.
• Our team of experienced writers has created a wide range of templates for common letters, including recommendations, resignations, and cover letters.
• Depending on the organization, other senior-level staff members may also be involved in the process.

For example, if you have a $100 petty cash fund and spend $27.52 on office supplies, your receipt for the purchase plus the remaining money in the fund will add up to $100. Managing your petty cash funds begins as soon as the first check has been cashed to create the petty cash float. For example, if you have decided on a petty cash fund for $100, your petty cash account book entry will show a debit of $100 to your petty cash fund and a credit of $100 to your bank account. If you plan to use petty cash for small business purchases like postage and office supplies, it may be handy to use the petty cash log to keep track of your transactions. Keeping careful records of cash expenditures will be a huge help when it comes time to reconcile your petty cash account.

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The reconciliation is straightforward—every time you take cash out of the box, you replace the cash with a receipt for the same amount. Therefore, all receipts plus remaining cash petty cash voucher must be equal to the original amount placed in petty cash. To learn more, read our step-by-step instructions for reconciling petty cash.

Source documents are critical to auditors, who use them as evidence that recorded transactions actually occurred. At the end of the month, John will use the filled petty cash vouchers to determine how much cash has been spent from the petty cash fund and how much needs to be replenished. The vouchers also provide a paper trail for the auditors and serve as a record for entering the petty cash transactions into the company’s general ledger. If the employee needs to spend more than the petty cash request limit, they can use the business credit card.