Petty cash log examples show how to record small cash payments, identify their purpose, and track the fund’s remaining balance. A useful log pairs each entry with a receipt, records who received or approved the money, and makes it possible to reconcile the cash on hand with the records.
What a petty cash log records
A petty cash log is a running record of money taken from a small cash fund for routine, low-value purchases. Depending on the organization, that might include postage, basic office supplies, or a small reimbursement when another payment method is impractical. The log is not just a list of amounts: it should explain what each payment was for and point to supporting documentation.
Most logs include the transaction date, payee or recipient, business purpose, amount, expense category, receipt reference, and the name or initials of the person who handled or approved the payment. Many also show the fund’s starting amount and its running balance. Those details help a reviewer understand the transaction without having to rely on someone’s memory.
A log is distinct from the receipt itself. The receipt supports the purchase; the log summarizes and organizes it. An entry marked “supplies” may be too vague if the receipt is missing or the purchase could have several explanations. A clearer note, such as “notebooks for front desk,” makes the record more useful while staying concise.
Two practical petty cash log examples
These examples use fictional details to illustrate the level of information a log can contain. The exact categories and approval steps vary by organization, so treat the labels as adaptable rather than universal.
- Office purchase: On April 8, Morgan Lee paid $12.40 for printer paper at a neighborhood stationery shop. The log might show the payee, “printer paper for reception,” the office-supplies category, receipt 014, and the custodian’s initials. If the fund began with $100 and no other transactions occurred, its recorded balance after this payment would be $87.60.
- Postage reimbursement: On April 10, Sam Rivera was reimbursed $6.75 for postage used to mail a signed document. The entry should identify Sam as the recipient, describe the mailing purpose, record the amount and date, and refer to the receipt or other supporting note. A remaining balance can be calculated after subtracting the payment.
In both cases, the entry documents the reason for the cash leaving the fund. A receipt number or attached receipt connects the summary to evidence. If an itemized receipt is unavailable, follow the organization’s procedure for documenting the purchase rather than quietly leaving a gap. A short explanation and appropriate review may be required.
For a simple handwritten record, one transaction can occupy one row. For example, the columns might read: date; receipt number; paid to; purpose; expense category; amount out; approved or handled by; and balance. If the log is used to replenish the fund, a separate section can record the replenishment date, amount added, and person responsible.
Printable petty cash log template
Blank petty cash log
| Date | Receipt No. | Paid To | Business Purpose | Expense Category | Amount Out | Approved or Handled By | Balance |
|---|---|---|---|---|---|---|---|
Fund name or location: ____________________ Opening amount: ____________________
Sample — fictional details: April 8 | 014 | North Street Stationery | Printer paper for reception | Office supplies | $12.40 | ML | $87.60, assuming a $100 opening balance and no earlier payments.
How the fund and log work together
Many organizations use a fixed-fund approach, sometimes called an imprest system. A custodian is assigned responsibility for a set amount of cash. When cash is spent, the custodian records each payment and keeps the corresponding receipts. Later, the organization replenishes the fund for the documented spending, bringing the available cash back toward its established level.
For example, if a fund starts with $100 and documented purchases total $32.15, the cash remaining should be $67.85. The receipts for those purchases should total $32.15 as well. When the fund is replenished by that amount, the cash returns to $100. This arithmetic is a practical check; it does not replace review of the receipts, authorization, or applicable bookkeeping procedures.
At a reconciliation, compare the physical cash with the log’s calculated balance, then compare the recorded payments with receipts and any replenishment records. If the amounts do not agree, investigate while the transactions are recent. A missing receipt, a calculation error, or an unrecorded payment can all create a difference, and the log should document how any discrepancy was handled.
How to complete each entry
- Record the transaction promptly. Enter the date the cash was paid, not the date someone later remembers the purchase. Timely entries reduce forgotten details and make it easier to match a receipt to a payment.
- Identify the recipient and purpose. Use a person’s name for a reimbursement or a vendor name for a direct purchase. Describe the business reason specifically enough that a reviewer can understand it.
- Enter the amount and category. Record the amount actually paid and use a category that matches the organization’s existing labels. Avoid creating near-duplicate categories for similar purchases unless the bookkeeping process calls for that distinction.
- Attach or reference supporting proof. Keep the receipt with the log or use a clear reference number that connects the entry to a stored receipt. Follow the organization’s policy if a receipt cannot be obtained.
- Update the balance and obtain any required review. Subtract the payment from the prior balance and have the appropriate person review or approve it. Keep the approval evidence consistent with the organization’s process.
Use one currency and a consistent date format throughout a log. If a purchase is split among expense categories, record the split clearly and make sure the parts add up to the total paid. Corrections should remain understandable: follow the organization’s recordkeeping method rather than erasing or obscuring an original entry.
Choosing a paper, spreadsheet, or digital log
A paper log can suit a small fund kept in one location, particularly when transactions are infrequent and a printed record is easy to store with receipts. It is simple to use without a device, but balances must be calculated carefully, handwriting needs to be legible, and the pages need to be protected from loss or damage.
A spreadsheet can calculate running balances and sort entries by date or category. It is useful when someone needs to review a period of activity, but formulas can be overwritten and access to the file should be managed. Keep a backup and preserve prior records according to the organization’s own record-retention rules. A spreadsheet still needs receipts and review; automation does not establish that a purchase was appropriate.
A digital form or bookkeeping workflow may make it easier to attach receipt images and route entries for approval. It can also add setup and access-management work. Choose a format based on who enters transactions, how often the fund is used, how receipts are kept, and how the records will be reviewed. Whatever the format, use one authoritative log rather than several competing copies.
Controls and common mistakes
Petty cash is convenient because it is accessible, so a clear process matters. Assign a custodian, define the types of purchases the fund may cover, set an approval method, and limit access to the cash and records. Where practical, the person who reviews or reconciles the fund should not be the only person responsible for every transaction. Small organizations may have fewer people available, but they can still arrange a periodic independent review.
- Vague descriptions: “Miscellaneous” does not explain the purchase. Add a short purpose that identifies what was bought and why.
- Missing receipts: A log entry alone may not substantiate a payment. Track missing documentation and follow the organization’s exception procedure.
- Unrecorded cash movements: Record each payment and replenishment so the balance reflects what is actually in the box or envelope.
- Mixing personal and organizational money: Keep the fund separate from personal cash and do not use it as an informal loan source.
- Unexplained differences: Do not alter a balance merely to make it match. Recheck arithmetic, receipts, and entries, then document the resolution through the proper review process.
Another common misconception is that a petty cash log can replace the organization’s accounting records. Usually, the log is a supporting record: summarized transactions may also need to be entered into the organization’s regular bookkeeping system. Ask the person responsible for that process how often entries should be submitted and which expense categories to use.
When petty cash may not be the right fit
A cash fund may be unnecessary if purchases are rare, if employees can use an approved purchasing method, or if the organization cannot reliably safeguard and reconcile cash. Alternatives can include a controlled purchasing card, direct vendor payment, or a documented reimbursement process. Each option has its own approval and recordkeeping requirements, so the choice should fit the organization’s procedures rather than simply shifting the same gaps elsewhere.
For legal, tax, or financial-planning questions specific to your organization, ask a qualified professional. For ordinary recordkeeping, the practical goal is straightforward: make each transaction traceable, keep supporting evidence together, and reconcile the recorded balance with the cash that remains.
Frequently Asked Questions
What should a petty cash log include?
A basic log includes the date, recipient or payee, business purpose, amount, expense category, receipt reference, and balance. Add approval details or other fields if the organization’s process requires them.
How do I calculate the petty cash balance?
Start with the opening cash amount and subtract each payment. Add any replenishment when it is placed into the fund. The calculated balance should be checked against the physical cash during reconciliation.
Can I use a spreadsheet as a petty cash log?
Yes. A spreadsheet can organize entries and calculate balances, provided it is maintained consistently, protected from accidental changes, backed up as appropriate, and supported by receipts and review.
What if I lose a petty cash receipt?
Record the transaction and explain that the receipt is missing; do not create a replacement receipt or leave the payment out of the log. Follow the organization’s documentation and approval procedure for missing receipts.
How often should petty cash be reconciled?
Follow the organization’s policy and the fund’s level of activity. Reconcile regularly enough to catch missing records or discrepancies promptly, and document who performed the check and when.