Petty Cash Log
Streamline petty cash log maintenance and ensure accurate and timely recordkeeping
What is Petty Cash?
Petty cash is a set amount of money intended to pay for minor costs that impact daily business operations. The petty cash covers expenses deemed impractical to process through cheque payment. Periodically replenished, petty cash expenditure is recorded on petty cash logs that go through regular accounting to ensure the integrity of its use.
What is a Petty Cash Log?
Also called petty cash log template or petty cash template, it is a tool used by a petty cash cashier or custodian to maintain an accurate record of all petty cash expenses. Failure to maintain the accuracy of a petty cash log and reconciling expenditures can lead to delays in the expected replenishment of petty cash.
This article will briefly discuss the following:
- How to maintain a petty cash log
- How to create a petty cash log template
- Difference between paper and digital petty cash log templates
- Powerful tool for petty cash log maintenance
- Free petty cash log template you can download and use!
How to Maintain a Petty Cash Log?
There are a few things to consider when maintaining a petty cash log template:
Determine the right amount of petty cash
The business needs to determine the optimal petty cash allocation across departments to be spent within an expected date range. The petty cash allotment should sufficiently cover all minor necessary expenses only since over-allocation may result in overspending.
Designate the petty cash cashier who will maintain the petty cash log
The designated person will be responsible for keeping track of the petty cash expenses and maintaining the record for reference come auditing.
Design the petty cash log to fit your business needs
Petty cash logs are used across departments within an organization, and each log may be customized to fit the business need. The petty cash log should be easy to use and maintain.
How to Create a Petty Cash Log Template?
A petty cash log template should have the following basic fields in order to help the petty cash cashier maintain a manageable record of all expenditures:
Date and Details
The date and details of the expenditure should be identified on a petty cash log to differentiate each item.
The person who approved the expenditure should be included on the petty cash log in case there is a need for clarification during the review of expenditures.
This section states the amount of money spent and/or received using the petty cash allocation.
Upon replenishment, petty cash is recorded as beginning balance. By the end of the allotted date range, it is updated to the ending balance.
Paper Petty Cash Log and Digital Petty Cash Log Templates
The use of a petty cash log is crucial to ensuring that petty cash is sufficient and spent appropriately. Here are the differences between paper-based petty cash logs and digital petty cash log templates.
Though paper-based petty cash logs may suffice for certain operations, companies with several departments should digitize their petty cash logs for added security; minimizing the risk of loss, damage, and unauthorized expenditure of petty cash logs.
In terms of efficiency, digital petty cash logs have a lot of advantages over their paper-based counterparts. Paper petty cash logs need to be manually secured by the petty cash cashier. Petty cash expenditures are manually entered and calculated then reentered on a computer should there be a need for electronic data transfer or storage of expenses.
Digital petty cash log templates are more convenient for cashiers who typically already use electronic devices such as laptops and smartphones on the job. Data entry can be automated, requiring less manual monitoring. Should expenditure records need to be corrected or updated, the petty cash log template can be updated from the app, eliminating the need to reprint and document the corrected logs.
Powerful Tool for a Petty Cash Log
iAuditor by SafetyCulture is a powerful auditing tool that can help petty cash cashiers automate and promote efficient maintenance of petty cash logs. iAuditor provides the convenience of mobile data entry across devices and the versatility of allowing data transfer between platforms to meet the needs of the business. Petty cash cashiers can take photos in-app and annotate them as evidence of petty cash expenditure. Petty cash logs can also be shared immediately for review, facilitating faster replenishment of petty cash through an efficient recordkeeping process.
Petty Cash Log Template
Petty Cash Log Template
This easy-to-use petty cash log template can help you maintain an accurate record of all petty cash expenses. Use your mobile device to easily update or reconcile expenditures anytime anywhere. Prevent delays in the expected replenishment of petty cash by being timely in submitting records using this petty cash log template.