This guide is designed to set out a few basic rules and procedures for handling cash within your organisation. Keeping track of cash in an organisation can be difficult. By setting up some procedures and being clear about who is responsible for cash, this task can be made simpler.
Here are some key principles to remember when you are dealing with cash:
- All cash income such as donations must be kept separate from the cash you use to buy things.
- Try to keep the use of cash to a minimum. Where possible make payments by cheque.
- Keep your cash in a lockable tin in a safe place. You should keep one tin for cash income and one for cash purchases.
- Name two people as being responsible for the cash in the organisation. These will be the only people who have keys for the tins.
- To keep track of cash purchases operate a ‘Petty Cash System’.
- Keep a petty cash book up to date.