The purpose of petty cash is to pay for minimally priced business transactions in a cost effective way. Petty cash can only be used for transactions that are not reported to the Internal Revenue Service.Know More
Petty cash should be set up as an individual fund with all transaction requests and receipts and replenishment of funds being properly recorded for auditing purposes. A fund custodian is appointed to maintain and reconcile the account.
Vouchers are used to request cash from a petty cash fund. Vouchers must be pre-approved before cash can be disbursed. Receipts for purchases are matched up to voucher requests and maintained for account reconciliation.Learn more about Personal Banking
Under certain circumstances, you can cash a check made out to someone else. The most common method used to cash a check made out to someone else is to have them sign the back of the check. The payee's signature creates a blank endorsement, allowing anyone holding the check to cash it.Full Answer >
A cashier's check can be cashed at a bank just like a regular check, according to First Columbia Bank & Trust Co. Because of scams, many banks now require a cashier's check to clear from the originating institution before making the funds available.Full Answer >
To keep a petty cash book, first determine the minimum daily amount of cash your company needs to cover small expenses, such as services, stationeries, parking fees, food and beverages. Each petty cash disbursement must be accompanied by a petty cash voucher and purchase receipt, and recorded in the petty cash book with the date, amount and description of the expense, explains About.com.Full Answer >
A petty cash voucher is a form used to track disbursements from an organization's petty cash fund for cash purchases of miscellaneous items. The voucher enables the organization's bookkeeper to properly account for petty cash when the fund is audited.Full Answer >