Free Petty Cash Log Templates

Here are previews and download links for these Free Petty Cash Log Templates,

Here are some Common Questions Asked about Petty Cash Logs.

What is a petty cash log, and why is it important?

Petty cash refers to the small cash fund kept to pay for unbudgeted or unpredictable expenses at small and medium-sized enterprises. Ensuring that every petty cash expenditure is accounted for, it enables businesses to meet their fiduciary obligation of keeping every financial record. Petty cash logs are very important in that they enhance or facilitate accountability with respect to guarding expenditures and using funds correctly. It is possible through petty cash logs for organizations to manage cash, balance-off books as well as control the use of funds within the organization. Lack of a petty cash log means that making purchases through petty cash can become unwieldy hence making it difficult to account for the expenditure. Petty cash log templates are used in many businesses for effective records of expenses and financial management.

How does a petty cash log help in financial management?

In business, accounting for low-value expenses is achieved through a petty cash assessment. With this tool, tracking and recording of all transactions is made possible, thereby safekeeping resources from ‘lose’ or unauthorized access. Companies employ their own petty cash assessments for the purposes of classifying costs and also making cost control effective, unlike unstructured costs such as these. Maintaining the practice of refreshment ensures organizations get rid of possible wastages in controlling cash thanks to petty cash administration. As records are executed from petty cash on a small scale, it helps them to control this due to the fact that in such businesses the petty cash reserves will be maintained in an appropriate fashion.

What details should be included in a petty cash log?

In case a petty cash log is designed with any and every requirement properly placed, there will always be a proper flow of each and every particular. It is as much important to record the date of every detail of each transaction as it is for a chronology of all of the expenses. Reasons for purchases or purposes of spending should also be provided to explain the use of money. The record must also include the amount of cash spent as well as the balance after expenses, for good and available measurement. A valid signature is confirming or approving such transactions from responsible authorities for monitoring purposes as well as for preventing abuse of the funds. Some organizations make sure that they have receipts with each petty cash transaction and petty cash log as well. A petty cash log with the above contents ensures proper cash handling and management.

How often should a petty cash log be reconciled?

Petty cash management often requires that there be a periodic checking and/or balancing of the petty cash book to ascertain that the entries in the book reflect what is actually available in the petty cash box. In a good number of organizations, petty cash balancing is done either every week or after months depending on the periodicity of transactions. Consistent reconciliation helps to pick out errors, omissions, or abuses before they escalate. It also ensures that there is no inadequacy of petty cash funds since they can be easily replenished in advance. Another merit of having a regular audit of petty cash is that it assists a business to keep up with any mistakes within and the efficiency loss thereof. The practice of doing regular management control reconciliation offers an increase in items of costs without missing out on any cash use and handling operations.