Cutting a check for $1 is a waste of company resources, which is why so many businesses use a petty cash drawer. For all those little but necessary expenses, this has been a fairly effective way of making cash available yet accounted for. And yet, the petty cash drawer can be an accountant’s nightmare. What do you attribute these miscellaneous expenses to in order to track and budget funds? What happens if the numbers don’t balance?
The current state of the petty cash drawer is inefficient and error-prone. Companies need to take the next step in petty cash, whether that means changing the system to be more reliable or getting rid of petty cash in favor a more useful solution. It’s all about finding what works best for your business and meets the needs of your employees in a convenient yet accountable way.
Here are some articles that can give you ideas on how to make these ubiquitous drawers more efficient as well as alternatives to the petty cash status quo: