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Petty Cash Policy



Petty Cash Petty cash allows you to make small purchases or reimbursements, in cash, for items such as stamps, office supplies, parking, etc. You should set an upper limit on payouts from petty cash. Anything over $ 50, for example, should be paid by cheque. The fund should be enough to cover petty cash expenditures for about a month. If it is too small you will have to constantly replenish the funds, and if it is too large it means you have cash on hand which should be more safely kept in your bank account. Keep petty cash in a locked box or drawer. It's better if only one or two people are responsible for petty cash. Buy or develop petty cash vouchers for documenting each transaction, and decide who in the organisation can approve petty cash payments.

Finance Procedure Our Community

Journal entry of Petty Cash

sample letter

Below is a sample email you can write to request petty cash.

Dear Sir or Madam (or the name of the finance manager), I am writing this email to ask you for the approval of a petty cash request, for the value of (enter requested amount here). This request is for official purposes only and is necessary for the (explain why you need a petty cash withdrawal). Thank you for your time. Yours sincerely, (Your name).