How Do You Keep Track Of Petty Cash?
Petty cash is an all-too frequently overlooked expense deduction for small businesses. Yet when you add up all the petty cash expenses over the year, the cash deduction for taxes may not be all that petty after all. Keep every receipt – even the ones that may not seem important. Petty cash is simply the cash you use for all those little expenses that don’t merit using checks or a credit card. Yet petty cash expenses do add up! Make a separate fund for petty cash. Pay your cash expenses out of this fund and log each expense on paper, filing each of those receipts as proof. You might want to staple the receipts to an 8″ x 10″ sheet for easy filing. Update your logs regularly and keep two columns with a list of each deduction from the original fund and a note how each expense is spent. At the end of the year you will have a total of all your small petty cash expenses. Ideally you will be able to break these expenses into different categories, like advertising, office supplies, entertainme
