FREE 11+ Petty Cash Reconciliation Samples and Templates in MS Excel | PDF

Petty cash is cash on hand that is kept by a business to pay for minor expenses that do not require a cheque issuance. These minor expenses are taxi fares, transportation fares, postage, payment terms for lunch meetings, payment for needed office supplies, etc. Businesses must keep a petty cash fund at all times so that the business can immediately have money to spend on their little needs. Petty cash funds are refilled when they are about to run out, but petty cash reconciliation must be done first. Why is this step necessary?

Petty cash is cash on hand that is kept by a business to pay for minor expenses that do not require a cheque issuance. These minor expenses are taxi fares, transportation fares, postage, payment terms for lunch meetings, payment for needed office supplies, etc. Businesses must keep a petty cash fund at all times so that the business can immediately have money to spend on their little needs. Petty cash funds are refilled when they are about to run out, but petty cash reconciliation must be done first. Why is this step necessary?

FREE 11+ Petty Cash Reconciliation Samples and Templates in MS Excel | PDF

1. Petty Cash Reconciliation Template

2. Petty Cash Reconciliation Sheet Template

3. Sample Petty Cash Reconciliation Template

4. Petty Cash Reconciliation Log Template

5. Petty Cash Reconciliation Format

6. Simple Petty Cash Reconciliation Template

7. Petty Cash Count Reconciliation Template

8. Sample Petty Cash Reconciliation Form Template

9. Reconciliation of Petty Cash Fund Closure Template

10. Petty Cash Reconciliation Form Example

11. Sample Petty Cash Fund Reconciliation Template

12. Monthly Petty Cash Reconciliation Template

What Is Petty Cash Reconciliation?

Petty cash reconciliation is the process of reviewing petty cash records. It is done to determine if the sum of the total amount on the petty cash register and the total remaining cash is equivalent to the kept petty cash fund. Reconciliation is usually done before the petty cash funds are refilled or at regular intervals. By conducting petty cash reconciliation, a business can ensure proper handling and recording of petty cash funds.

Undocumented disbursement is a common problem with petty cash. That is because not all custodians are accountants, so it’s possible that they may have incorrectly entered the disbursement details. There is also a high risk of fraud whenever there is cash, and it is another reason for doing petty cash reconciliation. Conducting petty cash reconciliation is like doing an internal audit, where you do not notify the custodian that you will be reviewing the petty cash register. This way, you can detect any personal withdrawals made by the custodian.

How to Reconcile Petty Cash

Since there are only a few details found in a petty cash register or payment record, it’s fairly easy to do petty cash reconciliation. Following the steps below will give you an idea of what to do to reconcile petty cash funds.

1. Determine Stated Balance

First, you’ll need to determine the amount of petty cash that is kept for business use. You can check the company’s petty cash policy manual regarding how much the stated balance should be. It is necessary to acquire this information first before starting the reconciliation process.

2. Prepare a Reconciliation Form

The next step is to prepare a petty cash reconciliation statement form. Use the sample form preferred by the business or print a blank reconciliation form template. You can find different templates online for free. Customize the template according to business preferences and keep copies for future use.

3. Calculate Total Withdrawn Cash

There are two ways to calculate total withdrawn cash. One is by subtracting the remaining petty cash funds from the stated balance. The other way is by getting the total amount of all issued petty cash vouchers and subtract it from the stated balance.

4. Calculate Remaining Petty Cash Fund

Now that you know the value of the withdrawn cash, the nest step is to calculate the remaining petty cash fund. All you have to do is take out the withdrawn cash from the stated balance. The result is the remaining cash. Count the remaining money in the petty cash box and compare it with your calculation.

5. Get the Sum of Withdrawn Cash and Remaining Cash

The sum of the withdrawn cash and the remaining cash must be equal to the stated balance. If not, then check your computations again to see where it went wrong. Review the recorded details thoroughly. If the information don’t match, then you need to have to investigate the matter further.

FAQ’s

Conducting regular reconciliation for your business helps you identify mismanagement of funds and potential theft. It allows you to create and implement an action plan in the soonest time possible. The petty cash reconciliation samples and templates that you can find above will help you practice the reconciliation of petty cash funds. Download them now for free!