What is petty cash?
Petty cash is a small amount of cash set aside for everyday expenses in a business, usually ranging from AED 100 to AED 500. It covers minor, unexpected costs like buying office supplies or reimbursing employee transport fares. In larger companies, different departments may get their own petty cash to manage small expenses independently. Roles are defined, with custodians overseeing the funds and cashiers handling distribution and accounting.
In bigger companies, petty cash isn't just kept in a drawer. They assign specific amounts to different departments, so each one can handle its own small expenses independently. There are clear roles: custodians oversee the funds to ensure proper use, and cashiers manage the distribution and handle the accounting entries.
Handling petty cash involves careful record-keeping. Every expense, no matter how small, needs to be recorded using vouchers or slips. Regular reconciliation is key to making sure the actual cash on hand matches the receipts and records, ensuring accurate financial statements.
Petty cash: manual mess
Petty cash management can be complex, not only because of dealing with various small expenses but also due to the challenge of ensuring meticulous oversight. Best practices suggest setting a fund limit based on your business size, typically between AED 30 and AED 300. However, even with these limits, keeping track of every transaction can feel like searching for a needle in a haystack.
Pemo: automation success
Managing petty cash used to be really confusing, like navigating a maze. But then, solutions like Pemo came along. In the world of petty cash, there were always risks of overspending, loss of expense record, fraud and errors. That changed when we started using digital methods.
Pemo has turned managing petty cash into a simple digital process, avoiding common issues for both managers and teams.
Enter Smart Corporate Cards
Using corporate expense cards with integrated spend management software, makes it easy to track and monitor transactions in real time. This innovation not only automates the process but also improves financial accountability.
- No-Slip Tracking: Pemo's software catches every penny spent automatically, so nothing sneaks by.
- Boss-Level Oversight: Managers can check expenses with just a click, no receipt digging required.
- Fraud-Proof: Thanks to individual corporate cards and digital logs, shady business has no room to play.
- See-Through Stock Checks: What's physically in stock matches what's digitally recorded, making cash stock a breeze.
- Cash Efficiency: Pemo promptly transforms sales into digital records right after the transaction, swiftly reducing cash risks.
Leveraging Technology with Corporate Expense Cards
Technology like corporate expense cards has been a game-changer when moving from manual petty cash management to automation. As we've seen, the old struggles of petty cash—dealing with piles of receipts and vouchers—are now replaced with straightforward, traceable transactions. No more guessing or drowning in paperwork; digital solutions ensure every cent is tracked without the hassle.
Using corporate expense cards not only simplifies monitoring but also gives employees a sense of trust and independence. It's about having real-time control over expenses and ensuring compliance without constant oversight. This shift to digital spend management reflects a broader trend in business operations: focusing on efficiency, transparency, and empowering employees.
In Conclusion
Using digital tools like corporate expense cards can make a once hard job much easier. So, go ahead and try these digital solutions—they'll make your business happier.
Ready to transform your business?
Book your demo now: https://www.pemo.io/book-a-demo
