Petty cash reconciliation form

Complete your petty cash reconciliation form whenever the fund needs replenishment, typically when it reaches 20-30% of its original amount. Most businesses also require mandatory monthly reconciliations regardless of fund level. Regular reconciliation helps catch discrepancies early and maintains financial control over your small cash expenditures.

When you discover a discrepancy, first recount the cash and double-check your math. Then review all receipts and transaction records for errors or missing entries. Document the discrepancy on your reconciliation form with a clear explanation. For significant variances, conduct a thorough investigation and consider implementing additional controls to prevent future occurrences.

Number each receipt sequentially and reference those numbers on your reconciliation form. Store physical receipts in an envelope attached to the form or scan them into a digital folder with matching reference codes. Group receipts by expense category to simplify analysis and create a clear audit trail that connects each transaction to your reconciliation documentation.

The most common errors include math calculation mistakes, missing receipts, incorrect beginning balances, undocumented cash withdrawals, and failing to obtain proper authorization signatures. Other frequent issues include mixing personal and business expenses and neglecting to note explanations for variances between the physical count and recorded transactions.