Petty Cash Control Procedure
Purpose of Petty Cash Control:
Petty cashPetty cash is a fund of money controlled by an individual from which minor purchases of goods or ser... control is an essential aspect of finance and accounting in hotels. It involves the management of small amounts of cash that are used for various expenses such as stationery, cleaning supplies, and other small purchases. To ensure proper management of petty cash, hotels should have a standard operating procedure (SOP) that outlines guidelines to be followed by staff members responsible for petty cash.
The SOP should include details on how the petty cash is to be stored, who has access to it, and the procedure for replenishing it. It should also specify the maximum amount of cash that can be held in the petty cash float and the frequency of audits to be carried out on the funds.
Furthermore, the SOP should outline the documentation required for any petty cash transactions, including receipts and invoices. This documentation is essential for proper record-keeping and should be filed accordingly. The SOP should also define the roles and responsibilities of staff members involved in petty cash management, including the person responsible for keeping the petty cash records and the individual responsible for approving petty cash transactions.
In conclusion, the SOP for petty cash control in hotels is critical for ensuring proper management and accountability of hotel funds. When properly implemented, the SOP helps to minimize the risk of fraud and mismanagement of funds, leading to a more efficient and effective finance and accounting system.
The purpose of this policy is to control Petty Cash purchases. It is the responsibility of the ControllerThe financial Controller�manager is in charge of all accounting functions of a hotel. Duties inclu... and General ManagerManager is a person in the hotel operations who is assigned to manage or supervise a group of employ... to ensure that Petty Cash is used only for approved purchases and is not abused. All disbursements from Petty Cash will be made by the General CashierPause for a minute and think how many cash banks there are in a large hotel: a few at the front offi... with proper approval. House Banks are NOT to be used for Petty Cash purposes.
Petty Cash Control SOP Procedures:
Petty Cash Purchases Process
- Purchases should be limited to emergencies like medicine, paying doctor fees, taxi charges for guest relocation, flower arrangements or bouquet for VIP’s (when the finance team is not available) etc. and they should not exceed $200.00.
- The employee should submit a Petty Cash VoucherVoucher is a document supporting a business transaction. that is filled out with a description, code and signature by the Department Manager.
- Purchases should be approved by the appropriate Executive Committee member.
- A valid receipt must be attached to each Petty Cash Voucher.
- If the Petty Cash is an advance for a purchase, the receipt and change are to be returned within 24 hours to the General CashierCashier is a person who processes guest checkouts and guest legal tender and makes change for guests....
Reimbursement Process For Petty Cash
- The fund is to be reimbursed at least monthly by a check written from the HotelA Hotel or Inn may be defined as an establishment whose primary business is providing lodging facili... Operating AccountAccount is a record in which the current status (or balance) of each type of asset; liability; owner... to the “Hotel Name Petty Cash Fund”.
- The General Cashier should prepare a Petty Cash Distribution Report in detail and submit it to Accounts PayableAccounts Payable is a key area in accounting; accounts payable ensures that all bills are paid on ti....
- This must be recorded by Accounts Payable in the same month as the expense occurred.
| DATE | PAYEE | PURPOSE | AMOUNT | ACCOUNT Ref. |
Training Summary Questions:
Q1. What is the purpose of the Petty Cash SOP?
Q2. Is it okay to take cash from the cashier float for petty cash purchases?
Q3. What is the process for petty cash reimbursement?
Q4. Who can approve petty cash transactions?
Patreon Only SOP Download
SOP Number: Finance and Accounting SOP – 08 Department: Cash Control Date Issued: 28-Jun-2021 Time to Train: 25 Minutes
