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Name: Jaimee Zagar Course: Business Administration Due date: Friday 14 th November Teacher: Michael Barry Line: 3. Financial management Systems Petty Cash management and Handling cheque payments. What is Petty Cash?.
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Name: Jaimee ZagarCourse: Business Administration Due date: Friday 14th November Teacher: Michael BarryLine: 3 Financial management Systems Petty Cash management and Handling cheque payments
What is Petty Cash? Petty Cash is a small fund that a company keeps on hand to cover smaller, miscellaneous expenses. This fund usually ranges from $50/$200
Miscellaneous Expenses • Petty Cash could be used for • Stationary • Stamps • Coffee/tea/milk and sugar for staff • Minor cleaning products • And so on
When Petty Cash should not be used • When intended to be used for large purchases • Personal loans and cashing personal cheques • Personal expenses • Gifts • Interest charges
Petty Cash Custodian • An employee in a department who has been authorized to make payments from a petty cash fund • An employee who is directly responsible for the administration of the fund.
Security of Petty Cash Funds • The custodian is personally responsible for the proper safeguarding of petty cash. • Cash and receipts must be kept in a locked container such as a fire-proof file cabinet, safe, or other suitable device. • The custodian is the only Authorised person who is able to access funds. • Unauthorized access is difficult.
Keeping Records • Book or spread sheets are a good way to record the usage of petty cash. • Every time you need to draw petty cash out, record the details and calculate the new balance. • When the balance gets low, draw a cheque for Petty Cash to top up the amount to the agreed level • An example being with a float of $200, a balance of $23 means drawing a cheque for $177).
Handling cheque payments • Always correctly fill out a cheque • Amounts payable on cheques must be expressed in words and figures, unless authorised. • All Cheques must be signed in handwriting. • Every alteration to a cheque must be initialled.
Handling cheque payments • Every cancelled cheque must be conspicuously marked or stamped “Cancelled”
UK Retail Spending UK Retail Shop shows spending of customers, and whether they use cheques, cash or cards.
Summary • The information in this power point is a summary of the basic information and knowledge about petty Cash and Handling cheque payments. • What is Petty cash • What you use petty cash for • What it should not be used for • What it is to be the person who is responsible for petty cash • What type of security and needs that should be taken to make sure that all funds are safe • How to keep records, Better ways to keep records • Handling cheques, what to do and how to fill in. • A table to show you just how unpopular Cheques are these days.
Petty Cash Websites http://www.apacs.org.uk/08_05_09.html APACS (UK payments association) This website was useful for it showed statics which were very useful when doing the graph. http://www.gststartup.gov.au/shoeboxCD/in_the_box/pettycash.html .Updated: Sun, 29 Apr 2001 \ Sight was useful with the diagram of how to keep records http://www.fsu.uts.edu.au/pdfs/petty_cash_procedures.doc http://canberrapreschools.org/downloads/ADMIN/recording%20petty%20cash.doc Handling cheques payments http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/07fb401d83488ae8ca2571cc000a6dd9/ad9cd5ef7ffa3dbfca25720a0016392a/$FILE/FMTI-0702.pdf