What is Petty Cash?

Petty cash is a basically small fund that businesses maintain to cover minor and sudden expenses. These could include office supplies, employee reimbursements, refreshments, or small emergency payments, guest welcomes, emergency equipment ordering, etc. It is a convenient way to handle incidental costs without going through formal procurement or reimbursement processes quickly.

Why is Petty Cash Important?

Quick and easy access to funds for small purchases.
Reduced burden on the accounting team for minor expenses.
Efficient tracking of miscellaneous costs.

Petty Cash Record Tracking & Documentation

businesses should be must implement a structured approach of petty cash record-keeping to maintain financial accuracy and accountability,

Essential Petty Cash Records

Petty Cash Log – A detailed log of all cash inflows and outflows.
Petty Cash Book – A record of all petty cash transactions.
Petty Cash Ledger – Used to track petty cash balances.
Petty Cash Register – A systematic recording method.
Petty Cash Report – A summarized statement of petty cash expenses.

Petty Cash Management

Managing petty cash well helps keep track of spending, make sure everything adds up correctly, and refill the cash when needed.

Key Accounting Practices

Assigning a custodian to manage petty cash.
Establishing a fixed amount for petty cash.
Maintaining detailed records of every transaction.
Conducting regular reconciliations.

Digital Petty Cash Solutions

Many businesses now prefer digital petty cash or petty cash online tracking for better efficiency. Using a petty cash sheet or online templates can improve accuracy and reduce errors.

Petty Cash Templates & Formats

For systematic tracking, businesses use predefined formats:

Petty Cash Book Format – A structured record of transactions.
Petty Cash Voucher Template – Used to document cash disbursement.
Petty Cash Format in Excel – Pre-designed templates for bookkeeping.
Daily Petty Cash Format in Excel – Helps track daily expenses.
Cash Log Template – Ensures accurate tracking of cash usage.
Cash Ledger Template – Maintains financial records of petty cash.

Petty Cash Transactions & Receipts

To ensure transparency, all petty cash expenses should be supported by receipts and vouchers as proof.

Common Petty Cash Documents

Petty Cash Slips – Documents small expenditures.
Petty Cash Voucher Book – A collection of all vouchers.
Petty Cash Receipt Template – For recording cash received or disbursed.
Cash Voucher Format – Standard format for expense approvals.

How to Record Petty Cash or Cash Book using a sleek bill?

Step 1: When you making any expenses which comes under office supplies, employee reimbursements, refreshments, or small emergency payments.

Step 2 : Add those expenses in expenses section and must take payment method cash Follow the below steps.

Go on sleek bill dashboard
Click on Expenses
Click on New Button
Select the name of parties who have to make payment
Enter the amount spent through petty cash
Select payment method as cash
Click on save

Step 3 : Go on Sleek Bill dashboard

Click on accounting
Click on cash book / petty cash
You will find that expenses entry in petty cash
Enter the amount spent through petty cash
Select payment method as cash
Click on save

Sleek Bill Petty Cash/ Cash Book feature

Download Report

Petty Cash Storage & Security

Since petty cash is a physical fund, it should be stored securely in:

Petty Cash Box – A lockable box for safe storage.
Petty Cash Drawer – Used in offices for secure cash handling.

Common Petty Cash Expenses

1

Office Supplies
2

Employee Reimbursements
3

Refreshments
4

Repairs & Maintenance
5

Postage & Courier Charges
6

Travel Expenses

Types of Petty Cash

General Petty Cash – Covers miscellaneous office expenses.
Imprest Petty Cash – A fixed amount, replenished periodically.
Discretionary Petty Cash – Managed by supervisors for small expenses.
Emergency Petty Cash – Reserved for unexpected costs.

How to Reconcile Petty Cash?

Simple Steps for Reconciliation

Add up all expense receipts.
Compare receipts with cash remaining.
Identify discrepancies (shortages or overages).
Replenish the petty cash fund to its original amount.

Pros & Cons of Petty Cash

Advantages	Disadvantages
Quick and easy access to small funds.	Prone to theft and mismanagement.
Useful for emergency expenses.	Requires manual tracking.
Reduces the need for checks or digital payments.	Difficult to manage without proper policies.

Efficient management of short cash is essential for running a smooth business. Whether using petty cash books, vouchers or digital tracking methods, having a structured system ensures Implement proper policies to maintain financial discipline, maintain accurate records and reconcile regularly. By following best proved practices, businesses can streamline their petty cash management, ensuring every small expense is properly accounted for and contributes to operational enhancement.