You give someone Rs 5,000 for office expenses. By the end of the month, Rs 3,000 is gone — and nobody can explain where Rs 2,000 went. There are receipts for tea and courier, but no record, no voucher, no signature. This is how petty cash dies: a thousand small leaks with no one watching.
The facts, in short
- Petty cash: Small cash float for minor expenses (tea, courier, stationery, taxi).
- The problem: No record, no voucher, no accountability — cash vanishes.
- The fix: Imprest system with a fixed float, vouchers for every spend, monthly reconciliation.
- Golden rule: No receipt, no reimbursement.
Why petty cash disappears
It does not get stolen in one go. It leaks: Rs 200 here for a courier, Rs 300 there for stationery, Rs 500 for an urgent taxi. Each amount is small enough that nobody bothers to write it down. By month-end, the float is half empty and nobody knows where the money went.
The real issue is not dishonesty — it is the absence of a system. Without a log, every spend is invisible.
The imprest system: how it works
An imprest system keeps a fixed float — say, Rs 10,000 — in the petty cash box at all times. Here is the routine:
- Set the float. Decide a fixed amount (Rs 5,000, Rs 10,000, Rs 20,000 — whatever covers a month of small expenses).
- Issue a voucher for every spend. When cash is taken, the person fills out a voucher: date, amount, purpose, signature, and the receipt attached.
- The box always balances. Cash remaining plus vouchers issued always equals the float.
- Top up monthly. At month-end, count the cash, add up the vouchers, and restore the float to its fixed amount by the exact amount spent.
If the float is Rs 10,000 and Rs 6,200 was spent during the month, you top it up by Rs 6,200. The box is back to Rs 10,000, and you have a complete record of every rupee that went out.
What goes on a petty cash voucher
Every voucher needs five things:
- Date of the expense
- Amount taken
- Purpose (tea, courier, stationery, taxi, etc.)
- Name and signature of the person who received the cash
- The original receipt or bill, attached
No receipt, no reimbursement. That single rule does more to stop petty cash leaks than anything else.
Monthly reconciliation routine
- Count the cash. Open the box and count what is physically there.
- Add up the vouchers. Total every voucher issued during the month.
- Check the math. Cash remaining plus total vouchers must equal the original float.
- Investigate any difference. If it does not add up, find out why before you top up.
- Top up the float. Restore the box to its fixed amount using the exact total of vouchers.
- File the vouchers. Attach the reconciliation sheet and file everything by month.
Stop the leaks. Get petty cash under control.
We will set up a petty cash system that actually works — vouchers, reconciliation, and a float you can trust.
Frequently asked questions
What is petty cash and why does it disappear?
Petty cash is a small cash float for minor expenses. It disappears because there is no record — someone takes cash, nobody writes it down, and by month-end nobody knows where it went.
What is an imprest petty cash system?
A fixed float (e.g., Rs 10,000) is kept at all times. Every spend gets a voucher. At month-end, the float is topped up by the exact amount spent — so the box always reconciles.
What goes on a petty cash voucher?
Date, amount, purpose, recipient's name and signature, and the attached receipt. No receipt, no reimbursement.
Can petty cash expenses be claimed for tax?
Yes — but only with proper documentation. Vouchers and receipts support the expense. Without them, FBR can disallow the deduction.