If your company keeps cash on the premises, be it a petty cash fund for incidental expenses or money for the cash register, you need to account for that money and for the way in which it is spent. By keeping track of the way in which this money is spent, you gain tighter control on how your company uses all its resources. Keep track of petty cash expenditures using a regular method of recording activities. One way to track petty cash is to keep a notebook or notepad with your petty cash fund and record all your expenditures. As the fund is depleted, reimburse it with cash transfers from an existing bank account, as described in the previous example.
Be sure to have a procedure in place for authorizing petty cash expenditures. Cash is the easiest thing to lose track of in a business. You need to have controls in place to protect your cash. Don't allow employees to access cash with authorization.