SOP Finance and Accounting – Petty Cash Control

Support Our Work

Since 2011 Setupmyhotel has been helping hundreds of hoteliers around the world. Support Setupmyhotel by becoming our Patron!

Petty Cash Control Procedure

Purpose of Petty Cash Control:

Petty cash 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 Controller and General Manager 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 Cashier 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 Voucher 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 Cashier.

Reimbursement Process For Petty Cash

  • The fund is to be reimbursed at least monthly by a check written from the Hotel Operating Account to the “Hotel Name Petty Cash Fund”.
  • The General Cashier should prepare a Petty Cash Distribution Report in detail and submit it to Accounts Payable.
  • This must be recorded by Accounts Payable in the same month as the expense occurred.
 DATEPAYEE PURPOSE AMOUNTACCOUNT 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?

SOP Number: Finance and Accounting SOP – 08
Department: Cash Control
Date Issued: 28-Jun-2021
Time to Train: 25 Minutes

Back Office Job Description Banquet BAR Beverage Service Cashiering Chef Chef Training Cleaning Concierge Duties and Responsibility Engineering Executive Chef F&B Setup F&B Training Finance Food Service Front Desk Front Office Formats Front Office Setup Front Office Training Guest Room Guest Services Hospitality Basics Hotel Formats Hotel Security Hotel Staff Job Description Hotel Staff Training Housekeeping Formats Housekeeping Setup Housekeeping Training Kitchen Kitchen Basics Kitchen Training Maintenance Maintenance Technician Reservation Restaurant Sales SOP SOP F&B Service SOP Finance and Accounting SOP Front Office SOP Housekeeping SOP Kitchen Staff Training

Support Our Work

Since 2011 Setupmyhotel has been helping hundreds of hoteliers around the world. Support Setupmyhotel by becoming our Patron!

Learn more