Petty Cash Management Checklist ( FINANCE )

This checklist ensures proper management and accountability of petty cash funds within the organization, facilitating transparency and minimizing the risk of mismanagement.

• Establish Petty Cash Fund

  Determine the amount and purpose of the petty cash fund that will be established for minor expenditures.

• Designate Custodian

  Appoint a responsible individual to manage the petty cash fund and ensure all transactions are properly recorded.

• Develop Petty Cash Policy

  Create a policy outlining procedures for disbursing petty cash, including limits on expenditures and documentation requirements.

• Create Petty Cash Log

  Set up a logbook or digital record for tracking all petty cash transactions, including date, amount, purpose, and recipient.

• Conduct Regular Reconciliations

  Schedule and perform regular reconciliations of the petty cash fund against the log to ensure accuracy and identify discrepancies.

• Implement Approval Process

  Establish an approval process for petty cash disbursements to ensure that all withdrawals are legitimate and documented.

• Review and Audit Fund Periodically

  Perform periodic reviews and audits of the petty cash fund to ensure compliance with the established policy and identify any irregularities.

• Replenish Petty Cash Fund

  Determine when the petty cash fund needs replenishment based on usage and submit a request for reimbursement as per company policy.

• Provide Training

  Ensure that all relevant employees understand the petty cash policy and procedures to maintain compliance and accountability.

• Document Improvements

  After each review, document any improvements or changes needed to the petty cash management process based on findings.