Every organization must have a certain amount of cash or funds that they can use to purchase small items—this is called petty cash. It’s not sensible to write a cheque to purchase small items, and it’s even costly to do so. Petty cash is cash on hand. It’s usually put inside a small safe where only a few people have access to, often, the manager. Since a lot of issues arise when it comes to handling cash, a petty cash log is required so that the cash fund will only be used for related expenditures.
What Is a Petty Cash Log Template?
It’s wrong to think that petty cash should not be tracked because it’s just a small amount of money. Before thinking this way, remember that petty cash is cash on hand, and a lot of people go the wrong path because of money, even with just a little amount of money. Without proper tracking and documentation, petty cash intended for business or organizational needs may be mismanaged. The small amount of money may grow into a scary amount of cash, and that’s a loss in business. That is because you keep shelling out cash thinking it’s doing the business any good, but it’s really not. Petty cash use should be tracked, and the best way to do it is through the use of a petty cash log template.
A petty cash log template is a ready-made document that is used to record purchases made using the petty cash. To prevent the misuse of petty cash, all transactions where the petty cash is used must be logged on the petty cash log template. The details should include the amount, date, person, and reason for using the petty cash fund. Some organizations provide their own log template, which may require more details.
How to Use a Petty Cash Log Template
1. Determine What You Need to Buy and How Much
Petty cash funds should only be used for relevant business expenses, and should never be used to purchase or pay for personal stuff. It’s important to determine what expenses the fund is going to be used on before cash is issued. The petty cash log will be questionable if the reason for using the fund is not for the needs of the business.
2. Provide the Reason for Using the Fund
A petty cash log template will have labeled columns and rows. You are required to enter the date of the transaction, and the detail or reason for using the funds. The information required may vary depending on the business or organization using it. It’s best to be familiar with several types of petty cash log format.
3. Calculate the New Balance
Record the amount of cash available in the petty cash box. Subtract the amount you need from the cash available and record the new balance on the space provided for in the petty cash log template.
4. Issue a Petty Cash Receipt
Get the petty cash receipt and fill it up with the required information. This document will be used as proof or backup when it’s time to refill the petty cash fund.
FREE 10+ Petty Cash Log Samples and Templates in MS Word | MS Excel | PDF
1. Petty Cash Log Template
2. Sample Petty Cash Log Template
3. Petty Cash Fund Log
4. Petty Cash Log Example
5. Petty Cash Credit Card Log
6. Printable Petty Cash Log
7. Simple Petty Cash Log Template
8. Petty Cash Receipt Log Template
9. Petty Cash Log in Word Template
10. Standard Petty Cash Log
11. Sample Petty Cash Change Log
How much should be in a petty cash fund?
The amount that a business or organization provides for petty cash funds varies. That is because it depends on the amount of money that the business deems as petty. The size of the business or organization may be a factor in the amount allotted for petty cash. Most companies keep petty cash funds between $50 to $200.
Where should I keep petty cash funds?
It is ideal to put petty cash funds where they can be easily accessed when needed. There should be a locked drawer or locked box intended to keep petty cash funds where only the person in charge can access it. Some organizations even have a small safe intended for this fund.
What are the examples of the uses of a petty cash fund?
Petty cash funds are used on minor expenses that help in business operations. The uses of the fund include the purchase of office supplies, buying flowers and cards for customers, paying for a catered lunch, paying for taxi or transportation fares, paying for postage, etc.
What is a petty cash voucher?
A petty cash voucher or petty cash receipt is used to make a disbursement for a petty cash fund. The voucher includes details like the date issued, the amount that is disbursed, the reason for making a disbursement, who receives the disbursement, and who disbursed the money from the petty cash fund.
Is it necessary to issue petty cash receipts?
It is not mandatory to get a petty cash receipt on all petty cash transactions, but it is a good practice. The IRS only requires a receipt for purchases amounting to $75 and above, so there’s nothing to worry about if your petty cash expenses won’t reach this much. But if you get petty cash receipts, you’ll have back up documents when you need to replenish petty cash funds.
Don’t waste your time looking for petty cash log templates when you can find them here! The best part is, these samples and templates can be downloaded for free. Use the sample templates for your business or organization, or use it as a reference to help you build your very own petty cash log template. Start checking out the samples now!
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