This checklist is designed to ensure the proper management and reconciliation of petty cash funds within an organization, helping to maintain accountability and prevent misuse.
Determine the amount for the petty cash fund and designate a custodian responsible for managing it.
Create a list of approved expenses that can be paid using petty cash to ensure proper use of funds.
Ensure that all petty cash transactions are recorded in a log, including date, amount, purpose, and who received the funds.
Perform regular reconciliations of the petty cash fund against the petty cash log to identify any discrepancies.
Ensure that the petty cash is stored securely in a locked box or safe to prevent unauthorized access.
Establish a process for reviewing and approving requests for petty cash disbursements to ensure adherence to policies.
Schedule periodic audits of the petty cash fund to ensure compliance with policies and identify any potential issues.
When necessary, properly close out the petty cash fund by reconciling the remaining balance and returning it to the general fund.