Petty Cash in Your Business? Don’t Let It Become a Headache!

Written By Kyle Padberg

Many small businesses rely on petty cash for small, everyday purchases. But without proper management, petty cash can quickly turn into a bookkeeping and tax nightmare.

To keep your books clean and tax season smooth, make sure you have:

  • A dedicated custodian responsible for managing petty cash and approving purchases

  • Clear policies outlining how petty cash should be used

  • Receipts for every purchase to ensure accountability and proper tax documentation

  • A replenishment system, ideally replenishing the fund by check once it’s exhausted

Skipping these safeguards puts your business at risk of errors, missed deductions, and compliance issues.

Need help setting up a robust petty cash policy or streamlining your financial processes? Contact us today - we’re here to help!

BookWise Bookkeeping

Phone 314-325-2478
info@bookwisestl.com

Kyle Padberg
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