Petty cash fund, referred to as petty cash, is a kitty found in companies and businesses, and it’s issued for payment of small expenses such as office supplies, reimbursements, catered lunch, office flowers, newspapers, etc. In most large companies, each department has its petty cash fund. The petty cash amount varies from one company to another, but mostly it ranges from $50- $300. Each payment made from the petty cash fund is recorded in the petty cash voucher.
Periodically the petty cash fund undergoes reconciliations, and these transactions are also recorded on the financial statements. Typically petty cash is used for operations that a company considers to be unreasonable to issue a check; the company considers these transactions to be petty, thus the name.
What is Petty Cash Receipt?
The petty cash fund is managed via petty cash receipts; when any money is withdrawn from the fund, a receipt must be issued to record the transaction. The petty cash receipt is also known as the petty cash voucher. The petty cash receipt features essential details about the transaction, including:
- The recipient
- The person issuing the money
- Amount issued
- How the funds will be used
- Date of issue
The petty cash receipt is used to justify any spending from the petty cash fund. These vouchers help in tracking money taken from the fund, which is also logged into the petty cash logs.
A petty cash receipt can also be used alongside petty cash request forms to replenish the petty cash fund if it’s depleted. The amount on the cash request forms should be equal to the amount of cash withdrawn from the fund.
Note: According to the Internal Revenue Service (IRS), petty cash slips should be filled and attached to the receipts for documentation of expenses.
Contents of a Petty Cash Receipt
A petty cash receipt contains the following contents:
Title: This is the heading on the receipts, and it usually reads “petty cash”; this description also includes the name of the company or business using the voucher.
How to use: Most companies include short guidelines on how to use petty cash.
Request date: This is the date when the petty cash is requested.
Receipt date: This refers to the date when the cash is issued.
Recipients name & signature: these details indicate the person who receives the money and confirmation by way of their signature.
Use: This refers to the reason why the money was requested.
Amount requested: This refers to the total amount the requester needs.
Authorized amount: This refers to the exact amount the recipient will receive.
Remaining balance: This is the amount of money that remains in the fund after the present request is deducted.
Custodian’s name& signature: The person issuing/approving the petty cash request must indicate their name and append their signature on the receipt to acknowledge they approved the transaction.