20 Free Petty Cash Log Template & Form [Excel, Word, PDF,] - Calypso Tree (2024)

In general, the template of the free petty cash log templateis in the form of columns that you can make by using Microsoft Excel. Of course, it is possible also to create it via Word, but it means you need help to calculate it. The number of columns and rows can be various depending on your necessities and the company’s regulations. Let’s learn more about it.

What is a petty cash log template?

A petty cash log template is a document used by businesses to track small expenses. It helps manage and record minor expenditures without going through detailed accounting procedures.

What should be included in Petty Cash Log Templates?

Some points that must be included in the petty cash log template are:

Date

The date is an important point. Moreover, it is related to the data with money. So, in the first column, there must be the date. Make sure that the column is enough to mention the date along with the month and year. This way, every time you need to record new data, you will remember to mention when the recording happens.

Receipt Number

After the data, there is a column for the receipt number. Although it is considered not really important for some reasons, in general, almost all the data must have a receipt tracker template number that is different from one to another. The number is to ease you in tracking where the fund comes from, particularly if there is something weird in it.

Description

The column for description must be larger than the others since you may need to type down many things there. It is even necessary to use more than just a row when the description is too long. There is indeed an unwritten rule that the description should be a manageable length. Well, the short and brief one is enough as long as it is understandable. But to make anything clearer, the long one is okay.

The Deposited and Withdrawn Amount

The last two columns are about the amount for the deposited and withdrawn money. Since the columns are related to numbers, it is okay if they are not too big or wide. However, the column should be enlarged if the cash log is less petty than it seems. For thepetty cash reconciliation template, the number of columns is added to make anything clearer. Even the payee and balance are necessary to add to the petty cash log.

The Withdrawn Amount

It relates to funds taken out of the petty cash pool. It’s crucial to track how much money is taken out and when.

The Further Details

The last two columns discuss the deposited and withdrawn amounts. Since these columns deal with numbers, they don’t need to be too big. But if you have a lot of details, you might need more space. For a more detailed petty cash log, add more columns. It helps clarify everything. Including the payee and balance can be useful, too.

Why Use Petty Cash Log Templates?

Here are some important reasons why use it:

Organized Record-Keeping:Having a petty cash log template is like having a mini ledger just for small expenses.

Quick Access to Transaction Details:Ever had that moment where you need to remember a tiny payment from weeks ago? With a log, you don’t need to rely on memory. Every transaction, no matter how small, is recorded. That means faster access to past details when you need them.

Track and Control Expenses:Even small expenses can add up. With a log, you can see patterns, like if you’re spending too much on office snacks. Comparing expenses between different times becomes easier, helping you manage money better.

Efficiency for Main Cash Handlers:Imagine being the main cashier and having to deal with both big payments and tiny ones. It’s overwhelming! Having a separate petty cash system means they can focus on the bigger picture, making their job more efficient.

Clarity in Main Cash Book: Your main cash book should be a clear record of transaction record template. With all the tiny payments in a separate log, the main book needs to be more clear and easier to understand.

Stay Updated:No more forgetting to jot down small transactions. Since everyone can record in real time, the log stays current. Refrain from backtracking or trying to remember small details.

Time-Saver:Instead of recording each small payment separately in different books, everything goes in one place. And because you only need to review and post those transactions periodically, you save a bunch of time.

Convenient Cash Transactions:Who wants to write a check for a small amount? With a petty cash system, small transactions are hassle-free. Just pay in cash, record, and you’re done!

Advanced Components for Detailed Tracking:

1. Payee:Who received the funds? Tracking this can help identify spending patterns and manage budgets.
2. Balance:A running tally of the petty cash fund so you always know how much is on hand.

Building Your Petty Cash Log with Modern Tools

Handling small money, or petty cash, is easier when you have the right tools. There are many modern tools to help:

Microsoft Excel

• What It’s Good For:Excel is great for numbers. It’s like a digital math notebook.
• Why Use It:You can set it up so it does the math for you! For example, if you add or spend money, Excel can automatically tell you how much you have left. It makes keeping track super easy.
• Helpful Tips:You can color-code things or even make graphs to see where your money goes.

Microsoft Word

• What It’s Good For:Word is like a digital writing notebook. It’s not just for numbers but for words, too.
• Why Use It:Some people like to make their logs look nice. With Word, you can pick cool designs and colors.
• Helpful Tips:You can make tables to list down when you spend or add money. Remember, you’ll have to do the math yourself here.

Petty Cash Log PDF

• What It’s Good For:PDFs are like digital papers. They look the same on all devices.
• Why Use It:When you finish making your log in Excel or Word, you can save it as a PDF. This way, it stays the same even if you share it or open it somewhere else.
• Helpful Tips:Make sure to lock your PDF if you want others to keep it the same.

Free Petty Cash Log Template & Form

• What It’s Good For:These are special sheets made just for businesses that need to know a lot about their small money.
• Why Use It:These templates have extra spaces (or columns) to write more details about your money. You can see something like what you spent on, who spent it, and more.
• Helpful Tips:Some of these templates can be found online for free. They’re ready to use, and you need to fill them in.

Tips for Effective Petty Cash Management

Handling small money, known as petty cash, is very important. Here are tips for effective petty cash management:

1. Regularly Update:

• What It Means:Write down every time you spend or add money from the petty cash as soon as it happens.
• Why It’s Good:Doing this makes sure you always know how much money is left. It also helps in making sure you remember to note any transaction.

2. Consistent Review:

• What It Means:Take some time, once a week, to look at the notes or records of the petty cash.
• Why It’s Good:When you check your notes often, you can quickly see if there’s a mistake or something that doesn’t look right. It helps in fixing problems early.

3. Limit access:

• What It Means:Only let one or two people you really trust handle the petty cash.
• Why It’s Good:Fewer hands touching the money means it’s safer. This way, it’s harder for mistakes or misuse to happen.

4. Keep a Safe Copy on Your Computer:

• What It Means:Along with your paper notes, save a copy of your notes on a computer or online.
• Why It’s Good:Computers are good at keeping things safe. If you lose your paper notes or if they get damaged, you’ll still have the computer copy.

Types of Petty Cash Logs

Over time, various types of petty cash logs have been developed to cater to different organizational needs. Here’s a breakdown of the most common types:

Simple Petty Cash Log

A simple log is the most basic form. It typically includes columns for date, receipt number, description, and amount. This format is ideal for small businesses or entities with minimal daily transactions.

Analytical Petty Cash Log

The analytical log offers a more detailed breakdown of transactions. Apart from the standard columns, it may categorize expenses into types like transport, meals, stationery, and so on. This type is beneficial for businesses looking to analyze and reduce certain kinds of expenditures.

Columnar Petty Cash Log

Columnar logs provide multiple columns for various expenses on a single page. For instance, instead of just one column for amounts, there might be separate columns for different departments or expense types. This format is useful for larger organizations with diverse expense categories.

Imprest Petty Cash Log

The imprest system is a bit different. Here, a fixed amount is set aside for petty expenses. Once this fund is depleted, it’s replenished to the fixed amount using the receipts and petty cash voucher as justification. The log for this system will typically show the initial amount, expenditure log, and any top-ups to bring the balance back to the initial amount.

Setting Up a Petty Cash System for Your Business

Handling small business expenses can be a breeze when you have a well-established petty cash system. If you’re wondering how to set this up, here’s a step-by-step guide to help you:

1. Get a Secure Box: Start by getting a lockable box to keep the daily cash report template and the receipts. It should be spacious enough to hold both money and slips.
2. Safety First: Your box should have a sturdy lock. You should hold one key and give a backup to a trustworthy staff member.
3. Appoint a Cash Handler: Choose someone reliable on your team to manage the petty cash. This person will give out cash against receipts and record transactions.
4. Find a Safe Spot: Keep the box in a spot that’s easy for staff to reach but hidden from customers. Choose a cash drawer tally sheet with an additional lock for extra safety.
5. Decide on Daily Limits: Remember, ‘petty’ cash is for small expenses. So, set a daily spending limit.
6. Starting Fund Amount: Load your cash box with an initial amount. It should cover usual expenses plus extra for unexpected costs.
7. Think Small: Avoid keeping large currency notes in the box. Having smaller denominations is handy for giving change.
8. Maintain a Log: Keep a log or record book for all small transactions. Teach your cash handler how to fill it out correctly.
9. Include in Accounting: If you run a bigger business, remember to add your petty cash to the company’s accounting records. These small amounts can add up and count as assets.
10. Start Using the Cash: Once everything’s set, start using the petty cash for daily minor expenses.
11. Always Give Receipts: Whenever money is taken from the box, ensure a receipt is placed inside. If someone needs cash in advance, they should give the receipt once they make the purchase.
12. Replenish Regularly: When the cash in the box runs low, refill it. Each time you do this, consider starting a new log page to keep things organized.
13. Adjust as Needed: If you find you need more cash, you might need to increase the amount you put in the box. If there’s always too much left, decrease it.
14. Regular Checks: Periodically check the log and the cash in the box to ensure they match. Regular checks help spot errors or discrepancies early on.

Who Should Handle the Petty Cash Log?

Petty cash is small money used for daily needs. So, who should look after it? Let’s see!

The Trusted Individual:Think of someone who is always careful and honest. This person should be good with money and details. They will make sure every penny is used right.

Cashier:A cashier is a person who handles money every day. They know how to count cash and give change. It’s their job to keep track of sales and money. So they can handle the petty cash, too.

Finance Team Member:In big companies, some people work with numbers all day. They know all about the company’s money. One of them can take care of the petty cash and make sure it matches the company’s records.

Regular Oversight:Even when someone is looking after the petty cash, the boss or manager should check it from time to time. It helps to make sure everything is okay, and there are no mistakes.

So, the person who looks after the petty cash should be someone everyone trusts. They should also know how to handle money well. This way, the petty cash will be safe and used correctly.

Maintaining a Petty Cash Log

Here’s a simple guide on how to maintain a petty cash log:

Starting the Fund:

• Decide on an initial amount for the petty cash fund. This amount will vary depending on your business needs.
• Withdraw this amount from the bank and keep it in a secure cash box.

Design the Log:

• Use tools like Microsoft Excel or even a simple notebook.
• Create columns for Date, Receipt Number, Description, Amount, and Balance.
• Always start with the initial petty cash amount at the top.

Record Every Transaction:

• Each time you spend or add to the petty cash, make an entry in the log.
• Write the date, receipt number (if any), a brief description of the expense tracking sheet, and the amount.
• Always update the balance after each transaction.

Safe Storage:

• Keep the cash box in a secure location, accessible only to authorized personnel.
• Store all receipts in the cash box to ensure accountability.

Regular Reconciliation:

• At regular intervals (like weekly or monthly), count the cash in the box.
• Ensure the physical cash matches the ending balance in the log.
• If there are discrepancies, address them immediately.

Replenishing the Fund:

• When the cash gets low, top it up to the initial amount.
• Record the replenishment in the log as an addition.

Review and Oversight:

• Periodically, a senior team member or manager should review the log.
• It helps in catching errors and ensuring transparency.

Backup the Log:

• If you’re using digital tools, always keep a backup of your log.
• If you’re using a physical notebook, consider taking photocopies or photos of the pages for backup.

Set Guidelines:

• Make clear rules about what petty cash can and cannot be used for.
• Train the person in charge of the petty cash about these guidelines.

Adjusting the Fund:

• If you find that you’re consistently running out of cash too quickly, consider increasing the initial amount.
• If there’s always a lot left over, consider reducing it.

Common Mistakes to Avoid in Petty Cash Log

Handling money, even small amounts like petty cash, requires care. Making mistakes can lead to losses or confusion. Here’s what to watch out for:

Not Updating Regularly:

• What it means:Forgetting to write down every time money comes in or goes out.
• Why it’s a problem:This can cause the cash in the box to not match the records.

Skipping Receipts:

• What it means:Not keeping or asking for a small paper that proves a purchase.
• Why it’s a problem:With receipts, it’s easier to know where the money went.

Not Setting a Limit:

• What it means:Not deciding on a maximum amount for petty cash.
• Why it’s a problem:With a limit, more money might be kept in the box, which can be risky.

Letting Many People Access:

• What it means:Allowing lots of people to take and give money without checks.
• Why it’s a problem:This makes it hard to track who did what. It also increases the chance of money going missing.

Not Doing Regular Checks:

• What it means:Not counting the money and matching it with the records often.
• Why it’s a problem:If there’s a mistake or theft, finding it late can make it harder to solve.

Using Large Denominations:

• What it means:Keeping big notes for small expenses.
• Why it’s a problem:It can cause difficulty in giving change and might tempt misuse.

Not Training the Person in Charge:

• What it means:The person looking after the petty cash needs to learn the rules and how to do it right.
• Why it’s a problem:They might need to do better or follow the right steps.

FAQs

Why do businesses need a petty cash log?

Petty cash logs offer a simple and efficient way to handle minor business expenses. They provide transparency and accountability and can simplify reconciliations at the end of accounting periods.

Can I create a petty cash log in Microsoft Excel?

Yes, Microsoft Excel is a popular tool for creating petty cash logs because it offers automated calculations, making it easier to track and manage transactions.

How often should the petty cash log be updated?

It’s best to update the petty cash log immediately after a transaction occurs. It ensures accuracy and helps avoid discrepancies.

What should I do if there are discrepancies in the petty cash log?

If discrepancies arise, it’s crucial to review recent transactions, check receipts, and discuss with the person responsible for the petty cash. Regular audits can help prevent such issues.

Do I need to keep physical receipts if I have a petty cash log?

Yes, it’s essential to retain physical receipts even if you maintain a detailed log. Receipts serve as proof of transaction and can be vital during audits or reconciliations.

How much money should I keep in the petty cash fund?

The amount varies based on the business’s daily minor expenses. However, it should be sufficient to cover routine small expenses while avoiding excessive amounts that encourage misuse.

Is it necessary to have a digital backup of the petty cash log?

It’s advisable to keep a digital copy to safeguard against data loss, mishaps, or physical damage to the hard copy.

How do I replenish the petty cash fund?

Once the cash runs low or reaches a predetermined amount, you can refill it from the main business account, recording the replenishment in the log.