Patty Cash Review, Track & Best Practices

Petty cash can quickly become messy if not monitored. This article covers how to review transactions, maintain accuracy, and follow best practices for smooth cash handling. Regular review ensures petty cash remains accurate and transparent. Follow best practices, and your petty cash will always be audit-ready.

Prerequisites

• Users with access to Finance → Petty Cash.
• Regular updates of expenses and credits.

How to Review Petty Cash?

1. Go to Finance → Petty Cash.
2. Use the grid to see:
   1. Credits (cash added).
   2. Debits (cash spent via expenses).
   3. Current Balance.
   4. Expense ID links for cross-checking.

Best Practices

• Record credits on the same day as cash withdrawal.
• Enter expenses with proper Payment Mode.
• Always add clear notes for every entry.

⚠️ Warnings:

• Do not manually create debits unless exceptional – use Expense Module.
• Never delay credit entry, else system may show negative balance.

⭐Important Points

• Weekly cross-check petty cash with physical cash on hand.
• System is audit-friendly if records are entered promptly.
• Keep petty cash for small routine expenses only.