What is a Petty Cash Receipt?

A petty cash receipt is a receipt that can disburse money to the employees to pay for the small expenses of a company. Staff can get money from the petty cash fund when they have to pay company expenses like office supplies or catered lunches. Expenditures from a petty cash fund are documented by a petty cash receipt. This can be a kind of bill receipt that makes everything convenient to pay expenses that are too small for a business check. By having a petty cash receipt PDF, the company can keep track of small expenses. Usually, companies will have petty cash receipt vouchers from a petty cash receipt book. Sometimes. a petty cash receipt acknowledgment letter is needed to issue expenses.

Any petty cash receipt example or petty cash receipt sample can prove to be useful to companies. Through it, they will have a record of their small expenses. To make a petty cash receipt, you can use a petty cash receipt template or a printable petty cash receipt template. Use a petty cash receipt app to manage your work better. Through the petty cash fund, you can control the expenses of your company without the administrative hassle. Petty cash receipts as purchase receipts can prove to be helpful when you are minimizing the cost of your company.

Advantages of a Petty Cash Receipt

Petty cash receipts are a fast method to give funds to your employees for small expenses. For one thing, you can keep a record of your expenses. This is especially good for businesses that have small business budgets and need to be careful with expenses. The next thing that we will discuss is the advantages of a petty cash receipt. They are the following:

Avoids Accounting Issues: Small expenses can be easily forgotten. Through the petty cash receipt, you can allot funds for small expenses that can make you have organized spending. Without a petty cash fund, you can have accounting issues when you are going to total all your small expenses. Because they can be many but small ones, they can be hard to track. Expense budget or business budget needs to be monitored but when they are too small, they can become difficult to manage. So, a petty cash receipt serves as a solution for managing small expenses. With it, you can avoid any accounting issues. You can have an organizational strategic plan for handling small expenses.Managing Your Business Financials: The best way to manage the small costs of your business is to have a petty cash receipt. Through a petty cash receipt, you can have a petty cash custodian that can manage your business financials when it comes to small expenses. The custodian will secure the reason for every small expense. This way, you can expect that all the expenses will be necessary somehow. You do not have to worry that your money will go somewhere that is not that important for the company. There can also be a way to tally all the expenses. The petty cash receipts will be computed against the petty cash fund to see that no money is lost. So, it is as if you are dealing with a zero-based budget worksheet where you have to ensure that all your money goes somewhere important. With petty cash receipts, you can allot a fixed budget that you know can support all the small expenses of your company.Easy to Understand: Petty cash receipts are easy to understand. So, you will not have hard implementation plans just to execute the petty cash receipts in your company. There is not even a need to train your staff to use petty cash funds. The process is so simple that you can assign the responsibilities to any of your employees. If your company will use credit cards or checks, the process to pay everything can be more complicated. But with a petty cash fund, your staff can find ease in getting money for small expenses. All they have to do is to request funds and after the petty cash receipt is given, they can have the needed money. Employees will also know that the amount is limited so they will not overspend. The petty cash fund will only be spent on the necessary things in the company.Accessible and Convenient: Having a petty cash fund is convenient for all of your employees. It is also very easy to access. Whenever your employees need something, they can go to the petty cash custodian and request money. So, if your staff needs some money for catered lunches or something to pay for transportation, they can easily have access to funds that they can use readily. There can be no difficulties in getting funds and everything will be convenient. If you are getting funds for program budgets or marketing budgets, you may have to go through the process of having checks where you have to accomplish some transactions. But with petty cash receipts, everything can be issued to you in seconds. A petty cash receipt is accessible to any employees and can give them convenience when they have to spend on something for the company.Systematic Recording: Every cent that you spend on your company is important. Small expenses can be minimal but when they are accumulated, they can cost a lot to your business. The way that you can avoid overspending for small expenses is by having petty cash receipts. Through them, you can record all your small expenses. You can have a systematic approach to how you can handle small expenses. The process of spending a petty cash fund is so advisable for any business that wants to track its spending. With a petty cash receipt, you can record every expense. It will be easy for you to balance your income and expense statement because of its systematic recording. Because of this, no cost will be wasted.Getting Assistance: When using petty cash receipts, there is a petty cashier that can give assistance in getting money for small expenses. This makes everything convenient for every staff that they will know who to turn to when they have to spend on something important for the company. This cashier manages the financial transactions of the business so he or she knows how to help every staff in every expense. So, there will never be any difficulties in getting some funds for small expenses. No staff will experience any hassles when they have to spend on something.Good for Emergencies: There can be expenses that are emergencies. In times like these, your staff will know what to do to get the needed money. Getting money from checks may take a while and if there is an emergency expense, it is not advisable. Through petty cash receipts, funds can be readily available. So, if you have emergencies in your company that requires a small amount, your staff will not experience any problems with paying.

Tips on Petty Cash Receipt

Though it may be easy to handle the petty cash fund, there may come a time when you will experience some problems like deficits. To avoid this kind of problem, you should have strategies for managing the petty cash receipt. The following are some tips that you can do:

Keep Track of the Petty Cash: Not just because your company has a petty cash fund for small expenses, it would mean that you will not be careful with your small expenses. Just like any annual budget or yearly budget, you should keep track of your funds. Advise the petty cashier or the petty cash custodian to be careful in issuing a petty cash receipt. They have to make sure that the expense is necessary. Otherwise, they should not issue a petty cash receipt.Purchase a Lock Box: You have to ensure the safety of your petty cash fund. To be sure of this, you need a lock box where you can be sure that no one will steal from the funds. This is recommended so that the money will be safe all the time. This way, everyone can be confident that no anomaly will happen to the money.Assign Responsibility: Make everyone participate well in handling the petty cash fund. To make everything better, assign responsibilities to your staff. Aside from appointing a petty cashier and a petty cash custodian, assign a go-to person who will usually get funds for small expenses.

How to Complete a Petty Cash Receipt

A certain procedure is needed in issuing a petty cash receipt. This procedure must be known to your employees so that they can have convenience in having a petty cash receipt. If you are out of steps to use, you can use the following:

1. Allot a Petty Cash Amount

The first thing to do is to designate a particular amount for petty cash. As a work plan, this amount will be the funds where employees will deduct small expenses. You need a petty cash box where you can store this money.

2. Be Clear on Disbursements

Of course, your employees cannot just get money from the petty cash funds any way they want. You should specify the allowable disbursements that can be given to your employees. This way, they will know the amount of money that they can get and when they can possibly get it.

3. Write the Details in the Petty Cash Receipt

When your staff knows the right process, they can request money from the petty cash custodian. When the custodian confirms their request, the petty cashier will give the money. The receipt will be issued with the necessary details. This includes the sequential number of the custodian, the date when the petty cash receipt is issued, the name of the payee, the amount of payment, a brief explanation of the use of funds, the account number, the reference number, and the signature of the authorized signer.

4. Maintain a Log

After issuing a petty cash receipt, you must keep a record of the transaction. Maintain a log of the request. Tracking logs can help you manage your finances.


What are the disadvantages of a petty cash receipt?

The disadvantages of a petty cash receipt are there is a risk in security, requires manual monitoring, and it may be outdated.

Why is it called a petty cash receipt?

It is called petty cash receipts because “petty” means small or little and petty cash receipts are used for small or little expenses.

Using petty cash receipts is a great way of handling your business finances when it comes to small expenses. Though this may be an old-fashioned way of managing your costs, it can still be fun. Imagine that your staff will not have difficulties in getting funds. Besides, everything is convenient so this is still recommended.