Reporting and Operations

Other Cash

Size of Organization: 

While writing checks and making deposits fall under the category of “cash,” there are other activities involving cash.

Bank reconciliations:

The bank statements are received each month and must be reconciled to the general ledger (ie, QuickBooks).

Petty cash:

Further, depending on need, a petty cash fund may be started to cover incidental office expenses. This fund should be for a minimal amount and should be used sparingly. Receipts should be obtained for all expenses paid with cash from the fund, and the recipient of the cash should sign the receipt or a voucher.

The amount of the petty cash fund should be a set amount. When the cash in the fund is low enough to be replenished, the remaining cash and all receipts should be added together to verify that the total of both equals the stated amount of the fund. The check written to replenish the petty cash fund will be a transfer between two cash accounts.

A sample petty cash reconciliation is available below.