Liquidating petty cash expenses
When your organization has an actual book for petty expenses, all your cashier would have to do is list down everything right after every transaction.The amount, date and purpose (for expenses) would have to be listed down so your record will be comprehensive and complete.The debit part of your log would only include one column, which would be the cash received from the cashier.Remember that only small amounts should be recorded in the log and if you have this type of log, you’d have to specify this to the person you would put in charge of your funds.Typically this kind of book or log is created for small payments or transactions which involve small amounts so that everything is recorded, no matter how small.Some examples of such small payments are bus, taxi or car fare, stamps and postage, payments for coffee or tea and others.
A petty cash form can be created in your computer and the columns can be filled out there as well.
Petty cash fund is a relatively small amount of cash that businesses keep on hand for the purpose of small transactions such as providing change to customers, postage expenses, highway tolls etc.
In such transactions, the use of checks is time consuming, costly or illogical.
In all kinds of businesses, it would be very important to have your own petty cash log to monitor and record all your transactions.
Especially when dealing with smaller amounts, which could go unnoticed, having a log or a record would allow you to keep track of everything as the small amounts pile up.