As a first-time business owner, you will experience some surprising things about finances, especially when it comes to petty cash. Most first-time business owners underestimate the relevance of including petty cash into their journal format entries. There are times when the budget or the supply for office supplies, toiletries, etc. is not enough. What do you do when this happens? You rely on the petty cash funds to abruptly buy more supplies. You must know that petty cash funds save the day when specific issues arise. The funds are there as a reserve when you need it the most, so do input these expenses in the petty cash logs!
What Is a Petty Cash Log?
Petty cash is a small number of funds that the company keeps in a safe location. According to cashier.rice.edu, petty cash funds help pay for the little expenses that are not necessarily part of the initial budget that the company has proposed for things like toiletries and office supplies.
There are various uses for petty cash funds. Companies and organizations use petty cash for things like office supplies, toiletries, condiments, coffee, and sugar. There are instances when cashier uses petty cash as a change for customers who pay money, and the money that the customer paid to the cashier instantly goes into the petty cash funds.
Travel expenses for business trips are part of the petty cash funds. Transportation plays a significant role in company deliveries and transactions. No business transaction will occur if the company does not give an amount dedicated to that part. And like what we have mentioned before, there are instances when the budget for transportation is not enough. When this occurs, employers the petty cash funds for such abrupt situations. Petty cash in this manner saves the day!
5+ Petty Cash Sample Logs
Here are six samples of petty cash log forms that you can freely use for reference. You can download a high-definition copy of the examples that we have graciously provided below. Try to look at the structure and content of each sample carefully. Observe if each of the sample forms below have any differences or similarities and then compare your findings. Trudge on and start examining each of the examples now!
1. Sample Petty Cash Log
2. Petty Cash Log Sample Form
3. Petty Cash Log Sample
4. Specific Petty Cash Log
5. Sample Petty Cash Fund Log
6. Petty Cash Sample Log
The Types of Petty Cash Logs
As there are various uses for petty cash funds, there are also different types of balance sheets that log in petty cash transactions. Presented below are the four main types of petty cash log forms that accountants primarily use when recording petty cash transactions. Carefully read them and maybe even research more about them on the Web.
1. Simple Petty Cash Log
This type is the most basic type of petty cash log among all the other types. In a simple petty cash log, you only have to create a column for the amount and another column for the date. The amount a cashier receives from someone of higher authority, like a head cashier, is written on the debit side while the amount the cashier spends using the petty cash funds, the cashier writes it on the debit side. When the day has ended, the cashier may calculate and compute the remaining money.
2. Analytical Petty Cash Log
This type of petty cash log dedicates a column for every heading in your credit side of the form while on the debit side of the file, you must only dedicate one column, which is the cash received from the cashier. This type of petty cash log only records small amounts.
3. Columnar Petty Cash Log
This type of petty cash log contains various columns for amounts of money that you must keep track of daily. This type must have a debit and credit side like all other petty cash logs. All of the company’s expenses and receipts get recorded into one column, and this column must be named “Particulars.” After the “Particulars” column, you must create a column for the dates of debit and credit transactions. On the debit side, the amount of money received from the cashier will be placed here. The company’s sample expenses must be categorized in chronological order. At the end of the log, you must add the total amount of the expenses incurred with the use of the petty cash funds.
4. Imprest Petty Cash Log
This type of petty cash log is similar to a columnar petty cash log, where it also has a lot of columns on the credit part and only one column in the debit side. In this type, the head cashier would provide a specific amount of money to the petty cashier to cover any expenses that will soon be incurred by the company. When the costs have been committed, the petty cashier will list them all and submit an itemized summary of the costs to the head cashier. The total amount of costs incurred must never exceed the total amount given by the head cashier.
How to Do Petty Cash Documentation
Here are a few tips on how to do petty cash documentation so you can properly manage the funds and the expenses well.
Step 1: Create a Petty Cash Policy and Procedure
Make a procedure and policy regarding the management of the petty cash funds. Assign one person to handle the petty cash funds. This person must be someone you fully trust with such things. Determine how much you will allot for the petty cash funds, and you must tell the one in charge that he must give receipts for every transaction. The petty cash should be balanced monthly.
Step 2: Create a Sample Petty Cash Log
Out of three petty cash logs that we have presented above, you must choose only one. You must select one that you deem is easy to understand but also detailed when summarizing the expenses incurred.
Step 3: Prioritize Balancing the Petty Cash Computations
When recording petty cash expenses, you must have the petty cash log be balanced. The balancing of the petty cash computations must be done at the end of every month.
Step 4: Review the Files Involved in the Documentation
Once you are finished with balancing, you must review the petty cash log computation again. The petty cash log might be balanced, and you might just have thought it was balanced.
Step 5: Print and Compile the All the Files
After everything, print the petty cash log and then compile it! You must never forget to save a copy on your desktop as a backup in case something terrible happens to the printed petty cash logs.
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