What’s Wrong with Petty Cash?
Your petty cash supply was used to pay for a cup of coffee, a fast supply run while working on a project, and a thank you meal for your staff. Using cash to pay for such little things appears a lot simpler. Petty cash, however, is full of issues that could devastate your company.
Here are a few issues that small businesses frequently encounter while employing petty cash.
Your staff needs petty cash to make important out-of-pocket purchases. Nevertheless, getting your hands on the money itself is not an easy task.
Cash requests from employees must be made, typically by completing a form. You must maintain it apart from their cash and ensure that their personal and professional expenses do not overlap. They must acquire a receipt and change after making the purchase.
They must then keep both until they can submit an expense report. There is a lot of space for error in this process.
There is always a significant risk with keeping cash on hand in a firm.
The more petty cash transactions you have outside of the office, the less managed it gets. Even though that cash is “petty” – utilized in little sums. You need to track petty cash logs. Petty cash may be difficult for managers to manage, which can result in overspending or money being wrongfully taken.
Accounting in Money
Tracking and comparing receipts for all cash transactions requires a significant investment of time and resources from your finance department.
Additionally, because more money than anticipated was spent on covering costs in the field, they now have to sustain budgets with a financial deficit. These issues exacerbate themselves as your firm expands.
A Better Petty Cash Solution
A straightforward prepaid business card will relieve you of the need for cash. Each employee’s use of PEX prepaid cards is unrestricted. However, managers have complete control over every dollar spent by defining the maximum expense amounts, and the kinds of authorized expenses. And the approved locations for spending.
By funding cards based on certain staff tasks, clients, locations, or the time of day, you can better manage your budgets and spending. Wherever they are in the field, the PEX platform can track spending data for each employee and transfer additional cash around the clock.
With just one small adjustment, you may drastically cut down on errors and fraudulent spending while gaining unprecedented control over your expenditure. Additionally, you’ll free up your staff from tedious paperwork and time-consuming manual processes.
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