A petty cash reconciliation can be a official overview of petty cash records. The intent of this action is to check if there are any undocumented disbursements. This kind of disbursements are a common trouble in petty cash, in which there exists a higher danger of fraud. Also, due to the fact most petty cash custodians are usually not properly trained as accountants, they could improperly document disbursements. For these factors, a petty cash reconciliation ought to be done at common intervals. The evaluate could be treated being an audit, which suggests not warning the petty cash custodian with the arrival of your reviewer. This insufficient warning is beneficial for detecting any personal withdrawals with the petty cash fund with the custodian.
Other Samples of Petty Cash Reconciliation Form :
It can be valuable to demand unexplained discrepancies to an expenditure account established apart for that goal. By doing this, it can be substantially less complicated to trace the cumulative degree of undocumented losses about time. Also, think about getting a plan that requires the inner audit workers being notified if the degree of an unexplained shortage inside a petty cash fund exceeds a specific amount.
At last, flag petty cash cash for more repeated reconciliations in the event you detect an ongoing sample of glitches. Improved review frequency can uncover difficulties before substance losses accumulate.
Petty Cash Reconciliation Form | Excel – download