Petty cash accounting software
Managing petty cash is a struggle for many businesses. Learn how spend management software and smart debit cards help make small expenses easy.
Track petty cash expenses
Automate your petty cash log
Monitor business expenses in real time
Sync spend with your accounting system
The all-in-one difference
faster end-of-month closing
visibility on all operational spend
setup & no hidden fees
receipt reconciliation in just 2 days
virtual cards, subscriptions & users
The best solution for petty cash accounting
Why have one system just for petty cash? Even a small amount of cash is company money and needs to be treated carefully. You're better to create simple steps that apply for all payments, no matter their size.
Set a clear petty cash policy
Have set rules and when and how to spend petty cash? Company debit cards have these same rules applied. The difference is you can be sure that these rules are followed, as the smart cards won't let team members spend outside of them.
Log payments through the mobile app
Rather than recording petty cash transactions by hand, check every payment using the mobile app. Card payments are logged automatically and linked with your accounting software, but you can verify each payment in real time, and employees can take a photo of their receipt immediately, before it gets lost.
Create one process for all business expenses
Why have one system just for petty cash? Even a small amount of cash is company money and needs to be treated carefully. You're better to create simple steps that apply for all payments, no matter their size. Spend management software and smart employee cards ensure every payment is easy and fast, but also safe, secure, and accounted for on the balance sheet.
Achille Manbou, Financial Controller at We Are Social
I need to be able to monitor expenses incurred. But before, I didn’t even have real-time visibility of cash flow in the company. With Spendesk, I control company spending while giving our teams complete autonomy. And I'm far more calm as a result. It's a real time- and money-saver!Learn more
Communications agency, London, United Kingdom
Petty cash accounting FAQs
We’ve answered the most common questions that you can start using Spendesk like a pro.
Why do companies have petty cash expenses?
Business expenses can be difficult to manage. Most rely on business credit cards and invoice payments, neither of which are suitable to buy a few office supplies or snacks for the team. So many rely on a small petty cash fund to pay for ad hoc expenses.
But the petty cash box is not a good or advisable system. Most companies see this as the easiest option when dealing with a small amount of money, but that's usually because their other payment methods are not really designed for modern businesses.
Is the petty cash account really a problem?
Most companies see petty cash as a convenient option, if a little old fashioned. But it can be an issue for two main reasons:
- It requires a petty cash custodian. Someone needs to take the time to manage petty cash, and they also become a gatekeeper for other staff. If another employee needs to make a quick legitimate purchase, they can be blocked.
- It's prime for abuse. Even with a good petty cash custodian, it's hard to ensure that every payment is worthwhile and justified - even with the best intentions. Missing receipts, lost or damaged petty cash books, and Excel errors make this a situation to avoid.
- It's a nightmare for bookkeeping. Expense accounts can be hard to manage when every payment is made through a business credit card. But when high volumes of small cash payments are involved, accountants have a hard job on their hands.
Does petty cash count for business tax?
Petty cash is another business expense, just like any other. In most countries, companies can claim business tax relief based on their expenses. But to do this, they need to be able to show where the money has gone, and often to provide receipts.
So yes, petty cash is important for business tax, and your ability to track small amounts of cash and provide receipts can help reduce the company's tax bill each year. More importantly, mysterious expense payments are a real problem in an audit.
Can't we just take money from the cash register?
Not without making your accountant's life miserable and putting the company at risk. A separate petty cash fund is used to avoid this exact situation. And even better, avoiding cash altogether usually ensures that payments can be tracked in your chart of accounts.