How do we top up / deposit money into Petty cash or reduce / withdraw money?

Your organisation may manage one or more petty cash accounts (tins or boxes) and you may choose to maintain a 'float' or balance of a particular size.

Therefore, from time to time you may need to:

  • Withdraw cash from a current account to replenish your petty cash balance;
  • Deposit cash from petty cash into a current account;
  • Top up your petty cash tin from the cash received for another purpose, for example from a service offering;
  • Deposit cash from petty cash as part of a larger bank deposit.

Income can be recorded into petty cash from other sources such as sundry donations or expense refunds by recording 'Petty Cash Income' on the Petty cash screen.

Cash withdrawal from a current account

When reconciling a cash withdrawal from a current account (or a cheque made out to cash), select the option 'Petty Cash Withdrawal'. Once you have chosen the petty cash account, the corresponding petty cash balance will increase.

Deposit money from Petty Cash into a current account

The reverse of the process above is also possible via the Bank Reconciliation screen of the current account in question.

When reconciling a bank deposit to a current account, select the option 'Deposit of Petty Cash'. Once you have chosen the petty cash account, the corresponding petty cash balance will decrease.

Adjust your Petty cash balance when processing other cash collections or deposits

When recording a bank deposit, which includes cash collected for other purposes (for example from service collections), you can:

  • Retain some of the cash for the purposes of petty cash -This will record the original value against the intended income category (for example £100 collected through a service offering), whilst reducing the net figure banked (by the amount retained), allowing you to then deposit into petty cash, with the system increasing your petty cash balance accordingly;
  • Add an amount from petty cash to a bank deposit - Your petty cash balance will be immediately reduced by the value added to the deposit (even before reconciliation). At the point of recording the deposit you should physically move the cash from Petty cash into an envelope or bag ready for the deposit. 

You can record bank deposits as 'Mixed Income' through the bank reconciliation screen or via the Bank Deposit module.

To help you better understand the Petty Cash module as a whole, please visit the module overview page here.

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