Tracking petty cash

Written by Reed Tinsley | June 27, 2008

 

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 the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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