Many businesses benefit from having some petty cash on hand when cash is required or simpler.
If your business handles petty cash, we have several recommendations on how to best track that petty cash, as follows:
- Establish a set amount of petty cash you need to have on hand. Keep enough to cover several months’ worth of expenses you expect to pay out of petty cash.
- Store your petty cash securely and designate one person to manage it. A lockbox or drawer with a lock is perfect for this. If you are solo, consider designating a separate wallet just for petty cash!
- Always ensure that a receipt is collected every time petty cash is used. Store the receipt in the petty cash drawer or wallet. That means the total cash and receipts should always be the established petty cash balance. You’ll know when you need to replenish the petty cash when the cash is almost gone, and it’s mostly receipts.
- Create a bank account in QuickBooks Online called “Petty Cash.” Then, whenever you withdraw cash from your main checking account, you can post it here as a deposit. You can also record receipts when you incur them or reconcile the petty cash periodically.
Remember, petty cash is merely a convenience to the business. Therefore, the monies in petty cash should still be used for business expenses and will be treated just like any other business expense. So make sure you track your petty cash!
ZümiFi- Sweating the Details!
The track that Petty Cash!
Financial Management Services
ZümiFi can help you create the Financial Management discipline and the routine to flex your business muscles. Our services can show you how to get the results you desire for your business. Like a personal trainer at the gym, ZümiFi’s extensive financial and business expertise can save you time and money in managing your business. We’ll help you achieve your success more efficiently and effectively.
The Scope of ZümiFi’s Financial Management Services
With our Outsourced CFO services, we can help you with the following:
Monitor your business’s financial performance with customized criteria and metric tracking.
Create budgets and cash flow projections to monitor your most critical resources strategically.
Design and implement internal controls to ensure that the information you gather is clear, concise, and worth the effort you put into gathering that information.
Advise regarding the technology your business uses and business process optimization.
Provide advice/ support to the CEO / COO / Owner as a key and confidential partner.
Financial Review and Oversight – For clients who manage their bookkeeping, we offer oversight and review services to monitor that bookkeeping and provide our unique expertise in QuickBooks and financial analysis for your business.