A petty cash system is a way of being able to use cash to purchase items from suppliers where it is barely worth opening a trade account. This dialogue allows you to shadow an existing petty cash system, start a new one, make entries about purchases, and write cheques periodically against the receipts.
Location: Finance Manager, Banking and Debt
Overview
The benefit of using a Petty Cash system in Business Administrator is that it helps keep the Cash Book and reporting structures accurate and up to date.
Business Administrators petty cash system allows for two scenarios: you can start a new petty cash system, or you can shadow and existing one.
You might want to shadow an existing system running, and don’t want to use the system on Business Administrator.
A new petty cash system
On first use, you will be asked to write a cheque for the value that you want the petty cash float to start at: you might choose £50, as an example.
Existing petty cash systems
For an existing system, Business Administrator will simply get on with recording details about receipts. When you need to, you can write a new cheque against the receipts, whence it will become a normal petty cash system. It is only the outset that’s different.
Maintaining the Petty Cash system
It is vital that you maintain the petty cash system by recording details of receipts as they are acquired.
When the receipts have built up to a value that you set the budget at, Business Administrator will ask you to write a cheque against it to turn the receipts into cash.