Financial management Systems Petty Cash management and Handling cheque payments

1. Name: Jaimee ZagarCourse: Business Administration Due date: Friday 14th November Teacher: Michael BarryLine: 3 Financial management Systems Petty Cash management and Handling cheque payments

2. What is Petty Cash? Petty Cash is a small fund that a company keeps on hand to cover smaller, miscellaneous expenses. This fund usually ranges from $50/$200

3. Miscellaneous Expenses • Petty Cash could be used for • Stationary • Stamps • Coffee/tea/milk and sugar for staff • Minor cleaning products • And so on

4. When Petty Cash should not be used • When intended to be used for large purchases • Personal loans and cashing personal cheques • Personal expenses • Gifts • Interest charges

5. Petty Cash Custodian • An employee in a department who has been authorized to make payments from a petty cash fund • An employee who is directly responsible for the administration of the fund.

6. Security of Petty Cash Funds • The custodian is personally responsible for the proper safeguarding of petty cash. • Cash and receipts must be kept in a locked container such as a fire-proof file cabinet, safe, or other suitable device. • The custodian is the only Authorised person who is able to access funds. • Unauthorized access is difficult.

7. Keeping Records • Book or spread sheets are a good way to record the usage of petty cash. • Every time you need to draw petty cash out, record the details and calculate the new balance. • When the balance gets low, draw a cheque for Petty Cash to top up the amount to the agreed level • An example being with a float of $200, a balance of $23 means drawing a cheque for $177).

8. Handling cheque payments • Always correctly fill out a cheque • Amounts payable on cheques must be expressed in words and figures, unless authorised. • All Cheques must be signed in handwriting. • Every alteration to a cheque must be initialled.

9. Handling cheque payments • Every cancelled cheque must be conspicuously marked or stamped “Cancelled”

10. UK Retail Spending UK Retail Shop shows spending of customers, and whether they use cheques, cash or cards.

11. Summary • The information in this power point is a summary of the basic information and knowledge about petty Cash and Handling cheque payments. • What is Petty cash • What you use petty cash for • What it should not be used for • What it is to be the person who is responsible for petty cash • What type of security and needs that should be taken to make sure that all funds are safe • How to keep records, Better ways to keep records • Handling cheques, what to do and how to fill in. • A table to show you just how unpopular Cheques are these days.

12. Petty Cash Websites http://www.apacs.org.uk/08_05_09.html APACS (UK payments association) This website was useful for it showed statics which were very useful when doing the graph. http://www.gststartup.gov.au/shoeboxCD/in_the_box/pettycash.html .Updated: Sun, 29 Apr 2001 \ Sight was useful with the diagram of how to keep records http://www.fsu.uts.edu.au/pdfs/petty_cash_procedures.doc http://canberrapreschools.org/downloads/ADMIN/recording%20petty%20cash.doc Handling cheques payments http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/07fb401d83488ae8ca2571cc000a6dd9/ad9cd5ef7ffa3dbfca25720a0016392a/$FILE/FMTI-0702.pdf