Petty Cash Guidelines



Record Management

1. Cash book maintenance & closing of daily balances.

2. Signature of PCA on daily closing balance at the end of day.

3. Daily Cash Report to be sent to SM Accounts/CFO/MD by Mail.

4. Hard Copy Filing of Daily Cash Report with sign of PCA.

5. Fortnightly review of Advance Float Given and Remark made in Advance Register.

6. Unadjusted advance more than 45 days float intimated to accounts department immediately for further recovery from employee from their any payment due.

7. Once in a month advance float to be closed it will stop misuse of company funds & its diversions.

8. Following form to be preprinted:

a. Cash Delivery Form.

b. Cash Receiving Form.

c. Reimbursement Settlement Form.

d. Petty Cash Request Letter.

9. Weekly cash verification by Senior Manager Accounts & Monthly cash verification by CFO & their report to be sent to MD.

10. Daily Weekly Cash Book Reconciliation with cash balance in tally.

11. Daily/Weekly cash book entry updation in tally.

12. Marking of cash book entries as “Entered” if entered in tally.

Limitation on Petty Cash Payment

1. Maximum payment to 1 person in one day will be 19999/-

2. Petty cash payment should not be made or used for:

a. Salary Payments.

b. Purchase without PO if more than 5000.

c. Loan to staff.

d. Advertisement.

e. Capital Expense.

f. Professional Payment.

g. Sub Contractor Payment.

h. Expenses on which TDS is applicable.

Petty Cash shall be used for:

1. Travelling & Conveyance.

2. Repair & maintenance if bill is less than 19999/-.

3. Fooding expenses.

4. Staff welfare less than 10000/-.

5. No payment shall be made unless it is approved by relevant authority with approved limit.


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About the Author

Chartered Accountant

I am a practising CA Mainly in Auditing, Assurance Consulting and founder partner of Asutosh Pankaj ( www.anpllp.com ). We are engaged in strategic and management consulting including internal risk audit. We invite all the people to interact and discuss the issues on Caclub forum

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