Petty Cash

Dfox

Our organization is growing rapidly, and we now have over 600 employees. We are meeting to discuss our petty cash and employee reimbursement process.

Can you tell me who or what department in your organization handles petty cash?

Also, what area writes the corporate policy on employee reimbursements?

allsteaks

Our Accounting Dept. developed our reimbursement policies and they control/audit all petty cash accounts.

NaeNae55

Finance/accounting is ultimately responsible for the policy and making sure P/C works. At times, for convenience, we have had the Executive Secretary be responsible for actually handing cash out. When we have had one who can't make change, we put it back in the F/A dept. It is usually handled there by whomever makes deposits.

Good luck!

Nae

Irie

Our Accounting Department handles the petty cash as well as making the rules for reimbursements.

drehil

Our Accounting Department handles petty cash, CEO makes policy.

ritaanz

The CFO handles the petty cash fund and makes policy. Works great. If he's in a foul mood, one would rather pay out of thier own pocket than ask for PC.

I am convinced he knows this and acts the part on purpose.

ACU Frank

"Can you tell me who or what department in your organization handles petty cash?"


Albert.

Hope that helps.

HRQ

Frank, you are doing a fine job of meeting the "dripping with sarcasm" requirement. Hope allsteaks can keep up. x;-)

marc

We eliminated petty cash from our organization. People either reach in their pocket and submit for reimbursement, or use one of our corporate credit cards, or get a check.

You would be surprised how much headache is saved. The audits inevitabley reveal a shortfall, and the petty cash custodian would have to make up the difference. Lots of fun issues around that. Tracking down the custodian, finding out that the fund had little cash because the replenishment process had been deferred, trying to make sense of hand written notes that are supposed to replace a missing receipt, etc, etc, etc.

PITA.

NaeNae55

Petty cash can be a headache, especially for the person in charge of the cash. Making sure yoour employee is trained properly, numbered P/C slips are used, and written procedures are followed helps ward off many of the kinds of things you wrote about. Like any other company policy, how much enforcement is used contributes greatly to how successful the plan is.

I have found that corporate credit cards are sometimes worse than P/C as employees often purchase things they don't really need and don't have permission to buy. Employers seldom make the employee return the item, and budget expenses can become a mess quickly. Worse, it is sometimes the source of theft when they buy things for themselves and use the card to get it. P/C is a source of theft too, but we have found it more limiting in how much someone can get away with.


Nae

HRQ

Accounting writes the procedure and recommended policy. I approve the final policy to make sure any threatened consequences are appropriate. (shortages/missing receipts will be payroll deducted, etc.)

Our preschool directors are provided debit cards instead of petty cash, and the cards can be used to withdraw cash when necessary. (Field trips sometimes require cash payment.) Accounting closely monitors the debit accounts.

The benefit is there's rarely any cash to manage, and the cardholder is expected to guard their card with their lives. (small exaggeration)

Staff who do not possess a debit card can purchase items and be reimbursed. They are advised that if they don't have advance approval for the purchase, their reimbursement may be denied.