The standard petty cash system taught on accountancy courses is the imprest system. You start off with a float called the imprest. Whenever money comes out of petty cash, you fill in a petty cash voucher. At any time, the total in the cash box plus the total of the petty cash vouchers equals the imprest so you can easily check if something's gone wrong. At regular intervals, you take the vouchers out and write those up, and take cash out of the bank to top up the imprest.

Ideally, one person has charge of the petty cash, and another person does the weekly (or whenever) check that cash + vouchers = imprest, gets money out of the bank to restore the imprest, and writes up the accounting entries for the vouchers - these will be debit whatever the vouchers show the money was spent on, credit bank with the amount of the withdrawal to top up the imprest.

This keeps petty cash totally separate from everything else and checkable. It also means that any money coming IN, be it cash or cheques, should go nowhere near petty cash at all and just be banked.

You don't have cheques in petty cash. The clue is in the name.

Petty cash is too simple to improve.

Hi, I need some help in changing the petty cash system in my work place to impress my manager but I don't know where to start. Until now it has been recorded in a book and done every week. What I have been thinking is, changing the system and do it every day and do it in separate sleeps for every single day. Any Ideas? Also before they didn't have a cash float and I thought of setting an amount which will be the same everyday. And the third thing is cheques, do I include cheques? Before they didn't count cheques toget