Date

Voucher

Payee

Purpose

Set up the fund

The fixed amount of the fund (for example $200), the custodian, and the cash on hand to start.

Log each voucher

Date, voucher number, payee, purpose, category and the amount paid out or received.

Replenish

Write a check for the replenishment amount and record it as a receipt in the log.

Good petty cash habits

One custodian, and the box locked.
A numbered voucher, signed by the person receiving cash, for every payment, with the receipt stapled to it.
A fixed limit per payment; anything larger goes through normal payables.
A count and replenishment at least monthly, and always at month-end, so expenses land in the right period.

Sizing the fund

Pick an amount that covers a month of small purchases, like postage, office snacks or parking, without needing a mid-month top-up. If you replenish every week, the fund is too small; if cash sits untouched for months, it's too large.

Frequently asked questions

What is an imprest petty cash fund?

A fund kept at a fixed amount. Cash plus vouchers always equals the fund. When cash runs low, a check for the total of the vouchers brings it back to the fixed amount.

How do I record replenishment in the books?

Write one check to the custodian for the replenishment amount and post it to the expense accounts from the log's category totals. The petty cash account itself only changes when the fund size changes.

What if the cash count doesn't match the log?

Count the box, compare with the running balance, and record any difference as Cash Over and Short. Small differences happen; repeated ones need a closer look.