Petty Cash management and Petty Cash management and Handling cheque PaymentsHandling cheque Payments

Bridgette LeeBridgette LeeLine 3Line 3

Michael BarryMichael BarryDue Friday 14Due Friday 14thth

What is Petty Cash

Petty cash is a small fund of money, kept in the office for small purchases such as postage stamps, tea, coffee and milk, pens or paper, taxi fares etc.

Petty cash is also available for for other substances that are needed around the work place.

How to use Petty Cash

A cheque is written out and cashed and the money is placed in a petty cash tin. Each time money is spent the transaction is written up in the petty cash book (manually or using computer software). The petty cashier will keep track of the total amount spent.

The receipts or other proof of documents, will always equal the petty cash amount.

Security for Petty Cash

Petty cash should be kept in a locked box/ money tin in a locked safe, cupboard or drawer, out of public view.

The amount and location of the petty cash fund should not be discussed.

Storing Petty cash

You may store petty cash in some sort of safe or lockable box which only the petty casher can access.

Also a lockable cabinet then can only be gotten into with a key or a code.

Reconciliation of Petty cash

Update the Register of Petty Cash Payments. Total the petty cash payments listed on the Register. Count the balance of cash held for the petty cash

float. Ensure that the sum is equal to the original amount

of the petty cash float issued.

What is a Cheque payments

A written order (usually on a pre-printed form) directing a bank to pay a specified amount of money to a particular person.

A document that can be used to pay things of eg: bills or when giving a present.

A cheque can only be signed out the the persons name who is on the cheque no one else is able to use it eg: writing not negotiable means no one else can have the money.

How to use a Cheque

Security for Cheques

Keep your cheque book in a safe place. Never pre-sign cheques. When posting cheques, make sure they cannot be seen in

the envelope. When writing cheques, the amount of the cheque, in words

and figures, should begin as far as possible to the left of the spaces provided, so that other words cannot be added.

Any alteration to the cheque must be confirmed by full signature/s.

Storing Cheques

Always store your cheque book in a secure place. Report the theft or loss of a cheque book

immediately to the Bank. Do not give a blank cheque to anyone, signed or

unsigned. When writing a cheque ensure you leave no blank

spaces that would allow the addition of extra words.

Reconciliation of Cheques

Always check cheque buts against bank statements to see what cheque have been presented.

Ensure that you have money in your bank to cover non presented cheques, this will ensure you have money in your bank to cover these in the future .

Summary

Today in my presentation I talked about procedures in petty cash and cheques, I hope my audience had a great understanding of these points and have learned more about banking and money. For more information check out this website: http://www.hsc.csu.edu.au/.

Website References

HSC Bank online : http://www.hsc.csu.edu.au/business_services/services_120/documents/2600/important1.html. This site was very useful showed me how to understand the rules of petty cash.

Scotia bank online: scotiabank.com/cda/content/0,1608,CID8367_LIDen,00.html. This web page helped me have an understanding of reconciliation of cheques didn’t get much information of this only a few ideas.