If you are a club owner or manager, you probably know only too well about all those annoying small cash payments coming in and going out unexpectedly every day.

However, this petty cash of yours may be more important than you may think. Don’t underestimate its value. A payment here, a payment there and you have generated a serious cash flow without even realising it.

Therefore, it would be good for your finances to establish some rules for your petty cash. They will help you keep a track of all payments and sort them out easily in your financial reports.

Establish a Petty Cash Fund

To start with, establish a petty cash fund that will cover all the small payments. You will need to set a sum for this fund, known as a ‘float’, and always try to stick around the float. Take a round sum for your float so that it is easier to calculate; for example $100. When the money in the fund grow too much, take the extra and put it in the bank, leaving only the float. If you run out of money, add more until the set sum is restored.

Introduce Rules for Using the Petty Cash Fund

Of course, you will need to keep a track on the taking out and putting in. The idea of establishing a petty cash system is to control all your payments, not to add another X in the equation. Make sure you know all the people who have access to the petty cash fund and introduce the rules to them. When somebody makes a payment from the petty cash fund, fill out a slip – later the slips will help you find out who took money out, what they bought with them and what was the overall amount of money spent. The same goes for adding money to the fund – you want to keep an eye on the flow in both directions.

It’s a good idea to attach a receipt to the slip for additional information. In the end, the total of the receipts and the remaining cash should equal to the float you have set – $100 or whatever meets your need. In addition, make sure all payments above $50 are made with a check or electronically – it’s not worth using the petty cash fund for them.

Integrate Your Petty Cash Fund

If you are using accounting software for the needs of your small club, the programme should be able to account for your petty cash. Keeping your books will be easier if you regularly input information for your petty cash fund in the programme. This will give you more accurate information about the cash flow in your small club. The accounting software provided by Admin Bandit is capable of keeping a track on your small payments, so don’t hesitate to use the full extent of its features (if you have not seen our software before, inquire about our trial period conditions now!).

All in all, with your petty cash fund established and certain rules to make sure it is kept properly, all your payments will be in your control, and the financial information you need – at hand. This way you will know about all the cash flowing in and out of your club.