What is a small cash book?

When a company needs a small purchase, a small money book or account is often used. Petty Cash is a small amount of money, usually less than a hundred dollars, which is held in the form of cash. When the employee makes a purchase with small cash, the entry is made in a book called Petty Cash Book.

Since corporate credit cards are usually issued to a small percentage of employees, small cash may be required for different expenses. A common example would be the head of the office, which uses small cash to buy office supplies for the company. For the company, there is a minor responsibility that allows a small amount of money to be released at once than to issue a company credit card to the office administrator. As with debit cards or credit cards, there are usually a limited number of people with authorization for writing and signing checks. It is much easier to take money from a small cash account than to pass the process of writing a check.

It is essential that all the money taken from a small cash account is replaced by specific vouchers or revenues and recorded appropriately in Petty Cash Book. This serves a double purpose. First, it ensures that each costs are written to the appropriate account, such as office supplies, landscaping, etc. Secondly, it allows easy reconciliation of the account, which means that the amount of cash in hand plus any income or vouchers should be equal to the overall overall in Cash Petta.

Some songs in the office sell small cash envelopes instead of small cash books. These are large, closable envelopes that hold both money and income and have a printed diary form on the outside. Every debit for a small cash account is recorded in this form and it is an easy way to keep money. A new envelope can be used regularly as once a month or quarter, or when new money P is added to the accountObries what was reduced to a certain level.

In these modern times, small money accounts can also be recorded in computer accounting program rather than in Petty Cash Book. The account depository must be careful to ensure that any small cash reduction is recorded to the computer. It must also be charged to the correct account as if a check was issued.