A petty cash log template is a document used to track the cash deposited, cash withdraws, and the purpose of removing cash with the current date. This document is used to record the essential transactions of an organization. Petty cash is basically an amount of money used for small payments in the organization. It is used to buy small products such as stationery, meeting refreshments, etc. Moreover, the amount of money is kept in a safe or petty cash box.
Importance of a petty cash log:
Having a petty cash log is important for all kinds of businesses to monitor and record all transactions. It is especially important for smaller amounts that couldn’t go noticed. Let us discuss some importance of having a petty cash log;
It is a well-organized way that helps you to maintain documentation of all petty payments and expenses.
It contains all information needed with regard to small transactions. It allows you to record all transactions by different people a lot more quickly and easily.
With the help of this document, you can control petty expenses more efficiently. You can also use it to compare expenses between two time periods.
It is very helpful for the head cashier because by having this log he would not have to handle the small transactions. Hence, he can have more time to manage and control bigger transactions effectively.
A petty cash log makes your cash book more informative because it just includes major transactions.
There is no need to record all transactions separately and in this way, it saves your time. You may also like 20+ Free Nonprofit Budget Templates.
Let us discuss some different types of petty cash logs; Simple: It is a simple type of cash log and just like a single cash log. Create a column for the amount and a column for the date. The debit side on the log contains the amount which is received from the head cashier. While the credit side of the log has the petty payments made by the cashier. Analytical: In this type of log, you have to create a separate column for each of the headings in the credit part. On the other hand, the debit part has only one column that contains the cash received from the cashier. Columnar: The columnar petty cash log has various columns so that the expenses can be recorded on daily basis. The receipts and expenses are recorded together in a column. The receipts are known as particulars. Likewise analytical petty cash log, in this log, the credit side contains more columns and the debit side has only one column. Moreover, the expenses would be arranged according to the chronological dates of the transactions. Also, the credit side should contain the total amount. Imprest: Just like a columnar log, this type also contains a lot of columns on the credit side. By having this system, the head cashier has to provide a fixed amount of cash to the petty cashier.
Tips for handling petty cash:
Here are some tips that help you to make your petty system work successful;
At first, develops a reasonable amount for your funds.
Then, determine where the cash can be used. Also, explain that the cash is not used for those purposes.
You should ask your employees to record everything.
Petty cash log is not for everyone. So, you don’t have to provide all employees access to funds. Just assign this task to one or two employees.
In conclusion, a petty cash log template is an effective tool for businesses. It is a systematic way to track a small amount of money that is used to buy small products. It makes you able to keep a record of everything as the small amounts.
