Petty Cash Form – Petty Cash Template – A Petty Cash Form describes a simple method used by many businesses to avoid incurring the expense of checks or other formal forms of payment. Petty Cash is an amount of money that an organization has on hand that it can quickly purchase in order to expedite small, usually routine expenses. The availability of petty cash however is far more convenient than writing and issuing a check for even minor and usually infrequent purchases which are typically below the $25 mark.
As the name implies, a Petty Cash Form is a receipt that is used to obtain funds from a customer. It is written on plain paper, just as any other check, and may be stored in the customer’s checking account. Unlike a check however, the document must be cashed within a certain amount of time after it is written. In most cases, this means within the next banking week. The receipt is usually marked with a symbol which serves to signify the amount of time within which it is valid.
As previously mentioned, a simple Petty Cash Form serves the same purpose as a check but is considerably less formal. Because it is a receipt, it can be collected and held by the financial institution that issued it. When such funds are needed immediately, however, funds may be transferred directly from your savings to your bank account which will then be processed. In addition to being a simple way to obtain funds, these receipts are also commonly used as tax forms since they have a number of tax symbols displayed on them. These symbols allow you to determine which tax bracket you fall under and therefore gain some extra deductions on your taxes.
While all businesses should have some form of documentation to help keep track of their expenses and these receipts are no exception, many businesses choose not to utilize petty cash receipts because they are deemed to be informal. In many cases, an official written form is preferred because of the fact that it shows a more professional image to your customers and has a much longer life span than an informal one. Since many businesses utilize these forms to report their expenses, they are often kept tucked away in file cabinets or placed under the “payable to me” pile which most customers never see.
To expedite your petty cash account transactions, you should create a master Petty Cash Form. This particular form will serve as a universal template that you can use in many other situations where a petty cash account form may prove insufficient. For example, the form may need to be altered according to specific business requirements, so it’s important to take care to do this right. Many small business owners find the process of using their master form to create multiple forms to be rather time consuming and difficult. If you would like to simplify the process, you should consider using an imprest Petty Cash Form.
Imprest petty cash accounts are simply bank account stubs that have been printed with blank entries for all of your petty cash transactions. You can use these types of forms for nearly any purpose since they are typically easy to use and contain blank entries for virtually all of your transactions. By utilizing an imprest form for all of your cash transactions, you will save both time and money and provide your customers with a more professional impression.