Medical Practice Management
Jun 27

Tracking petty cash

Here are a few simple ideas on how to handle petty cash in your medical office:

  • Have a set amount on hand…say $100 or $200.
  • When petty cash is spent, get a receipt and have it signed by the person authorizing the expense.
  • Put the receipts in the drawer.  The total of cash and signed receipts should always equal $100, $200 or whatever the set amount is.
  • When cash drops below a certain threshold, write a check for cash to replenish based on the signed receipts in the drawer, accounting for those expenses accordingly.
  • Balance petty cash at least monthly….more often if it is used frequently.
About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →