Chapter 17 Petty cash BSBCMN207A/01—Process petty cash transactions Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Process petty cash transactions Summary Contents Process petty cash transactions Petty cash (BSBCMN207A/01) Summary Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) This is a system that allows for the payment of items that are too small to warrant payment by anything other than cash Petty cash imprest amount Cash on hand in the fund Petty cash vouchers for any payments for expenditure = + Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Policies and procedures should include: Specific duties of petty cash officer The amount of the petty cash fund Account names that could be used Fares Refreshments Stationery Security of actual cash is vital to avoid theft A sequentially numbered petty cash book must be used Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Control measures Petty cash officer solely responsible for recording process Exact proof of expenditure for each item Rotation of duties Random auditing of petty cash records Regular balancing of the fund Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Checking petty cash claims and vouchers Type of expenditure must come under established account guidelines All claims are to be work-related Maximum claim amount set at, say, $30.00 Claims must be current (within 30 days) Claims for payment must be authorised by supervisor Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. The petty cash voucher and appropriate receipt Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. The petty cash imprest cheque Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) Change required slip (for presentation at the bank) Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Recording the imprest cheque in your petty cash book Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Recording petty cash transactions Proof of expenditure agrees with amount being claimed Proof of expenditure has not been altered Voucher date is reimbursement date Account names are accurate Transaction is briefly described Voucher is signed by person seeking reimbursement Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Recording petty cash transactions Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Balancing your petty cash book Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Petty cash cheque requisition Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Petty cash (BSBCMN207A/01) cont. Completed petty cash book page With balances brought forward Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman

Summary Petty cash is a vital part of any business as it allows staff to purchase small business-related items with cash. The role of the petty cash officer is to keep the petty cash records up to date and balance claims with expenditures and injections of cash. All transactions must be accountable and related to the business. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Office Skills: A Practical Approach 4e by Horsfall and Turner Slides prepared by David Plowman