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SOP For Petty Cash Control

SOP Number: Finance and Accounting – 08

Department: Cash Control

Date Issued: 28-Jun-2021

Time to Train: 25 Minutes

Purpose of Petty Cash Control:

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.

Petty Cash Reimbursement Tracking


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?

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Authored and managed by Augustine, a hotelier with over 20 years of experience in the industry. He has a 3-year diploma with 'honors' from the American Hotel & Lodging Educational Institute and a Bachelor of Computer Application - BCA Degree.