It amazes me that some consignment, resale, and thrift shops don’t manage small expenditures with a
petty cash fund.
It’s by far the easiest way to do so. Here’s how:
Establish A Petty Cash Fund
Designate an individual and a backup person as custodian of the fund. In this case “many hands do not make light work” . This fund is used for minor and unanticipated expenses where a check can’t be written or the amount is so small that you don’t want to write a check. Some examples include buying pizza for the staff, postage stamps, minor office supplies, paper towels, and cleaning supplies. A pre-numbered voucher or ticket should be filled out and approved for each expenditure. When the balance in the fund becomes low a check from your regular bank account should be issued and cashed to replenish the fund and the expenses recorded in your accounting records. Surprise counts of petty cash should occasionally be done to make sure that employees are not “borrowing” from this source of cash. Counting the fund is very easy. The total amount of the tickets and the cash on hand should equal to the fund’s established balance.
from The Bean Counter
Auntie Kate The Resale Expert 