Petty Cash
Petty cash is a small amount of money kept on-hand by businesses for minor, everyday expenses like office supplies or lunch delivery. Bookkeepers are often responsible for managing this system, which includes tracking small expenses, maintaining receipts, and making sure the records balance correctly. It's like having a small emergency fund for the office that needs careful monitoring and regular topping up (called "replenishment"). Understanding petty cash management shows that a bookkeeper knows how to handle basic cash control systems and maintain accurate records of day-to-day transactions.
Examples in Resumes
Managed Petty Cash system for office of 50+ employees, ensuring accurate documentation and timely replenishment
Implemented new Petty Cash tracking system that reduced discrepancies by 95%
Responsible for monthly Petty Cash reconciliation and report generation for multiple departments
Trained junior staff on proper Petty Cash handling procedures and documentation requirements
Typical job title: "Bookkeepers"
Also try searching for:
Where to Find Bookkeepers
Professional Organizations
Online Communities
Example Interview Questions
Senior Level Questions
Q: How would you design a petty cash system for a company with multiple departments?
Expected Answer: A senior bookkeeper should explain creating separate funds for each department, establishing spending limits, designing approval processes, and implementing tracking systems that ensure transparency and accountability.
Q: What internal controls would you put in place for petty cash management?
Expected Answer: Should discuss surprise cash counts, regular reconciliation, receipt requirements, authorization limits, and documentation procedures to prevent misuse and ensure accuracy.
Mid Level Questions
Q: How do you handle petty cash reconciliation?
Expected Answer: Should explain the process of counting cash, matching receipts to expenses, documenting discrepancies, and preparing replenishment requests with proper documentation.
Q: What do you do if you find a discrepancy in the petty cash fund?
Expected Answer: Should describe investigating the difference, reviewing recent transactions, checking documentation, and following proper reporting procedures for any missing funds.
Junior Level Questions
Q: What basic documentation is needed for petty cash transactions?
Expected Answer: Should mention petty cash vouchers, receipts, running balance sheet, and replenishment forms as essential documentation for tracking expenses.
Q: How do you process a petty cash reimbursement?
Expected Answer: Should describe collecting receipts, filling out vouchers, getting proper signatures, and updating the petty cash log with new transactions.
Experience Level Indicators
Junior (0-2 years)
- Basic cash handling
- Recording transactions
- Filing receipts and documentation
- Simple reconciliation
Mid (2-5 years)
- Fund management
- Reconciliation and reporting
- Training others on procedures
- Problem-solving discrepancies
Senior (5+ years)
- System design and implementation
- Internal controls development
- Policy creation
- Multiple fund oversight
Red Flags to Watch For
- No experience handling cash or maintaining financial records
- Disorganized approach to documentation
- Unable to explain basic reconciliation processes
- Lack of attention to detail in number tracking
Related Terms
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