For companies to be in order, the correct administration of all their areas and processes is required. We have previously discussed the importance of proper accounting and the great benefits that this entails. In this post we want to share some tips for the correct handling of the petty cash, which will surely be of great help in the operation of your company.
You may be interested in our entry: Importance of keeping accounting within a company.
The petty cash is an amount of money that every company makes available to make minor expenses in cash. These can be daily or unexpected expenses, it is important that unnecessary disbursements are not made since it would not be fulfilling its true objective.
This cash must have a specific place for safekeeping and have adequate security. Only the persons in charge of the petty cash will have access to said money.
What type of payments are made?
It is generally used to buy stationery, cleaning supplies, water and coffee for employees, transportation, gasoline, among others.
It is important to have the correct control of the cash to avoid money leaks.
Tips for the correct handling of petty cash:
- Assign a person of your absolute trust to manage the petty cash.
- You must define which documents will be accepted to verify the expenses incurred. It is very important to keep this type of control even if the amounts are less.
- Define the types of expenses that can be made with this amount of money.
- Keep the petty cash updated. You should always have money to cover the small expenses that may arise.
- Make cuts periodically. Be sure to check that all movements are in order and are being used properly.
The petty cash also facilitates the reporting of minor expenses in the accounting of the company, since they are not done separately but under the same concept. Remember that it is important to correctly carry out the accounting to know the current situation of the business.
At QuAdrans law and finance we have the accounting service to help you keep your company in order and fulfill all your obligations. Contact us and get more information by clicking here.
Accounting service in Playa del Carmen
