Petty Cash Excel Template

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Petty cash is the company's reserved money for the payment of routine expenses with small nominal amount. The main characteristic of petty cash is in its nominal amount. It has a threshold which follow company's financial policy. And each company sets different nominal amounts according to the company's policy and operational scale. It is needed to fund small nominal transactions that routinely occur. For example, it will be complicated if people have to follow long procedures to get the money for routine office supplies like papers, markers and printer inks where they need those supplies immediately.

There are several goals for the establishment of petty cash, they are :

• Handles the problem of office supplies/supplies experienced by a part of the office
• Avoiding uneconomical or uneconomical payments for relatively small and sudden expenses.
• Alleviate the burden of staff employees in providing maximum service to customers as well as to business relations leaders.
• Accelerate the activities of supervisors who use the funds suddenly and also not planned before.

There are additional policy on how to use it, those are :

• The expenditure has usually been determined to the maximum extent of any expenditure incurred
• Expenditures are not allowed for lending (debt) to staff
• Proof of small cash disbursements must be signed by the holders of petty cash
• If any proof of payment, such as receipts, invoices or other supporting evidence should be attached also to proof of cash disbursement.

If the nominal amount of money contained in the petty cash account reached agreeable minimum amount, then it must be replenished in the following way:

• Petty cash holders make requests to cash treasurers
• They prepare a list of expenditures that have been enclosed with proof of transaction on its expenditures.
• The cash treasurer gives a sign of approval to the request form
• The cash treasurer gives the fund the amount of petty cash amount that has been issued.

Petty Cash Recording Method

In accounting, there are two methods commonly used in recording its usage.

1. Fixed Fund System

This Fixed Fund System Method is an accounting method in which petty cash amount is always fixed. If any cash expenditure incurred, the petty cash holder does not necessarily immediately record it, but merely collects evidence of the expense transaction. And at a predetermined time, when the fund is running low, a bookkeeping is only performed based on evidence of expenditure transactions that have been collected. The holder then file the petition for the re-establishment of the fund to the cash treasurer for a nominal amount incurred by the bookkeeping and proof of the expenditure transaction. So the nominal amount of petty cash funds will remains the same like the original amount.

2. Fluctuation Fund System

The fund system of change is often called the fluctuation system or the floating funds. The system requires that the nominal amount is not fixed but as required. For example, the company establishes a nominal amount of USD 500, then due to company financial condition they lower the amount to USD 400 for particular period. Or, they increase it to USD 750 due to incoming project that require bigger amount than current nominal amount can handle.

Petty Cash Template

This is a two worksheet template where the first worksheet consists of tables where you can entry all of petty cash transaction. The second worksheet is a reconciliation worksheet to check calculated versus physical check amount weekly.

In the first worksheet, you can type date, receipt ID, description, chart of accounts (optional), and debit/credit amount. Don't forget to put initial balance. It should be your petty cash agreeable threshold amount. The formulas in the second worksheet will sum the balance weekly. You can use it to check the calculated amount with the amount you keep.

This petty cash template is part of integrated accounting system spreadsheet where the detail transaction can be separated from entry in cash journal worksheet.