Patty Cash Review, Track & Best Practices

Petty cash can quickly become messy if it is not monitored. This article covers how to review transactions, maintain accuracy, and follow best practices for smooth cash handling. Regular review keeps petty cash accurate and transparent — follow these steps 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) — match against bank withdrawal slips.
   2. Debits (cash spent via expenses) — each debit links to a real Expense or Reimbursement.
   3. Current Balance — should be ≥ 0; investigate if not.
   4. Expense ID links — open the linked Expense for any unfamiliar debit.
3. Reconcile the Petty Cash balance with the Liability tab before month-end (if applicable).
4. Use the kebab menu → Export to take a CSV snapshot before any large credit / debit cleanup.

🌟 Best Practices

• Record credits on the same day as the cash withdrawal.
• Enter expenses with the proper Payment Mode so debits flow automatically.
• Always add clear notes for every entry — future-you will thank you.
• Take a CSV export at month-end before any cleanup.
• Reserve petty cash for routine, small expenses only.

⚠️ Warnings

• Do not manually create debits unless exceptional — drive them from the Expense Module.
• Never delay credit entry, or the system may show a negative balance.

⭐ Important Points

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