How petty cash works
Petty cash is a small float of money kept for minor expenses: a taxi to the bank, milk for the office, postage, a padlock. Each time money leaves the box, a voucher records who was paid, why, how much, and who approved it. At any moment, the cash in the box plus the vouchers should equal the float. When the float runs low, the vouchers are totalled and the box is topped up by that amount. This is called the imprest system.
What each voucher shows
- A voucher number and the date.
- Paid to and the purpose.
- An account or category, such as travel, office or postage.
- The amount in figures and in words.
- Whether a receipt is attached.
- Approved by and Received by signatures.
Four to a page
Petty cash vouchers are small, so SmallKits fits four on an A4 or Letter page with cut lines, numbered in sequence. Add one line per payment and each becomes its own voucher. You can also choose two or one per page.
A blank numbered pad
Prefer to fill vouchers in by hand at the cash box? Under Advanced settings, choose how many blank vouchers to print. They are numbered in sequence and the numbers are reserved, so your next printed vouchers continue from the right number.
Good practice
- Keep the float small and lock the box.
- Never pay out without a voucher, and attach the shop receipt whenever there is one.
- Have someone other than the cash holder approve payments.
- Count the cash and the vouchers together regularly.
Petty cash or payment voucher?
Use petty cash vouchers for small cash amounts from the float. For larger payments, bank transfers and cheques, use a payment voucher with full approval signatures. To claim back money staff spent themselves, use an expense claim.
A worked example
An office keeps a petty cash float of 200. During the week, the cash holder pays a taxi to the bank, buys milk and tea, posts a registered letter and buys a padlock for the store room. Each payment is a line: who was paid, the purpose, the account and the amount. On Friday she downloads the four vouchers on one A4 page, cuts them out, and has the office manager sign “Approved by”. Each person paid signs “Received by”. The vouchers and receipts total 34, the cash in the box is 166, and together they make 200. The float is topped up by 34.
Checklist
- Each voucher has a number, a date, a payee and a purpose.
- Amounts are in figures and in words.
- The shop receipt is attached whenever there is one.
- Someone other than the cash holder approves each payment.
- Cash plus vouchers equals the float when you count.
Setting up petty cash
Decide a float that covers about two to four weeks of small expenses, and a limit for a single payment (anything larger goes through a normal payment voucher). Keep the cash in a lockable box, give one person responsibility for it, and count it with a second person whenever the float is topped up. Record each top-up in your cash book with the total of the vouchers it replaces.
Petty cash terms explained
- Float
- The fixed amount of cash kept in the petty cash box.
- Imprest
- Topping up the float by exactly what was spent, using the vouchers as proof.
- Cash holder
- The one person responsible for the petty cash box.
- Reconciliation
- Checking that cash plus vouchers equals the float.
Who uses petty cash
Offices, schools, churches, clinics, shops and project sites that need to pay for small things quickly without a bank transfer or card: transport, refreshments, postage, cleaning supplies and small repairs. Larger or regular payments belong on a payment voucher instead.
Related free tools
- Free payment voucher generator: for larger payments that need full approval.
- Free expense claim form: for staff who spent their own money.
- Free receipt generator: to give receipts for money received.
One more tip
Print a pad of blank, numbered vouchers and keep it with the cash box. Fill one in by hand for every payment, and enter them here at the end of the week if you want a clean printed set for your files.
Updated 2026-10-29