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Petty Cash Management and Handling cheque payments.

Petty Cash Management and Handling cheque payments. Natalie Laidley Business Admin, Line 3 Due Friday 15 th Nov Michael Barry Financial Management Systems. Petty Cash.

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Petty Cash Management and Handling cheque payments.

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  1. Petty Cash Management and Handling cheque payments. Natalie Laidley Business Admin, Line 3 Due Friday 15th Nov Michael Barry Financial Management Systems

  2. Petty Cash • It is recorded in a money float with the details of each purchase recorded on vouchers which replace money as its taken from the float. • Petty cash is money that is set aside in a float for payment of a small expense.

  3. Petty Cash Payments Record Forms Include: • Appropriate Voucher Number. • Who the payment is made to. • Invoice number, where applicable. • A summary of the payment details made. • Signature of Receiver. • Signature of Petty Cash Custodian. • Indication if any further action is required, and what action. • Additional notes. • Once completed, a red PAID stamp is stamped on the form to complete the process.

  4. Petty Cash Floats Are not to be used for: • Salaries • Advertising • Loans to staff members for any purpose • Tips related to hospitality expenditure • Purchases of greater than $100 - $500 • Recurrent expenditure • Floats may be withdrawn if they are not correctly managed.

  5. Purchases • Individual purchases may be used to a maximum of $500 and may not be split into two claims to avoid this limitation. • Purchases over $75 GST exclusive require a tax invoice which must include the Australian Business Number. • A tax invoice is not required if the GST exclusive value of the supply is $75 or less.

  6. Maintaining a Petty Cash Float • Update a spreadsheet and balance the float daily or whenever cash is issued, if the float is not used daily. • Keep the tax invoices/receipts attached behind each associated petty cash approval form. • The total of the approval forms must equal the total of tax invoices/receipts.

  7. Petty cash book

  8. The Declaration of Petty Cash Float requires • Cash on Hand (A) • Petty Cash reimbursements (B) • Petty Cash recoups in transit (C) • Accountable amount of float (D) When the account is balanced, A + B + C – D equals zero.

  9. A recoup is required when… • Print the spreadsheet and attach the petty cash approval forms (including the attached tax invoices & receipts). • Ensure the total of tax invoices & receipts match the amount claimed in recoupment on the spreadsheet and that this amount is fully covered by the approval forms.

  10. Storage • Petty Cash should be stored in a separate locked container. • The cash box must be locked when not in use and kept in a locked safe under the control of the custodian. • Keys must be strictly controlled and restricted to those authorised staff.

  11. End Of Year… • At the end of the calendar year all Petty Cash floats MUST be returned to the Finance Office in entirety for re-banking to finalise the year end accounts. The Next Year… • The petty cashier must sign to certify that they will comply with the policies & procedures. • A request must be made signed by the Executive, Director.

  12. Cheques must be… Drawn “to order” and marked “not negotiable” unless: • Where the cheque is for the recoup of petty cash advances • Special arrangements have been made with a bank for the responsible officer to cash appropriately endorsed cheques

  13. Transactions in Tourism and Hospitality sectorsmay include… • cash • credit cards • cheques • EFTPOS • deposits • advanced payments vouchers • company charges • refunds • travellers cheques • foreign currency.

  14. Summary • Petty cash is money that is set aside in a float for payment of a small expense Record Forms Include: • Appropriate Voucher Number. • Who the payment is made to. Are not to be used for: • Salaries • Advertising • A tax invoice is not required if the GST exclusive value of the supply is $75 or less. • The total of the approval forms must equal the total of tax invoices/receipts. • When the account is balanced, A + B + C – D equals zero. • Petty Cash should be stored in a separate locked container.

  15. Bibliography • http://www.fbs.uq.edu.au/FMPM/index.html?page=40413#floats • http://www.fsu.uts.edu.au/pdfs/petty_cash_procedures.doc • http://www.csu.edu.au/division/finserv/staff/forms/policies/Petty%20Cashier%20Procedures.doc • http://www.ace.nsw.gov.au/images/files/stats/Publications/Informed%20and%20In%20control/Module%209%20trial.pdf

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