As the name suggests, Petty cash is the petite or small amount of cash that is required and is usually available to make small purchases in any organizations. It is usually kept in the cashier’s office and used to make payments for miscellaneous items like stationary supplies, birthday cakes etc. for which it is not practical to make payments through cheque and electronic transfers. Petty cash is a tricky area to manage mostly in organizations with their presence in different locations. However, it needs to be managed in the same way as your other assets in the business are being managed.
Employees often forget to bring back receipts, cash funds might tend to disappear and in scenarios like that summarizing multiple expenditures is a daunting and time consuming task. A financial statement that has numerous payments referred to as “petty cash” is very misleading and is the worst thing that can happen. The main aim for having a petty cash fund in any organization is to record small cash expenditures as expenses. If you are helping your employer in handling petty cash then in situations like above will put you in the risk of getting blamed if things go wrong. In order to have a balance to this system, you should outsource your petty cash management to a trusted expert to experience a fail-safe cash system to rely on.
SuperSeva Services proposes to offer an end-to-end managed service for managing your petty cash. For this purpose, SuperSeva will assign a SPOC (Single Point of Contact). This SPOC would be experienced in vendor management and well versed with customer service skills.
How does this model work?
SuperSeva’s process flow and delivery model:
- SuperSeva will assign a SPOC
- Client will daily Email the requirements to the SuperSeva SPOC
- Responsibility of the Client: To send a scanned /hard copy of the Vendor’s invoice along with an approval mail
- Responsibility of SuperSeva SPOC: Online payment to the vendor in 24 hours (after receiving the hard copy of invoice)
Benefits of outsourcing your petty cash management system
- Visibility and transparency to identify areas of spend inconsistency from site to site
- To have a secured point of entry control to prevent unauthorized transactions
- Electronic input of receipts
- Minimize the potential for mistakes – reduce handling errors
- Reduce deceit and minimize dishonest claims and thefts
- Can establish a system which is policy driven to reinforce limits of acceptable spend.
- Single point of contact to effectively handle real time cash flow.
- Maintain accurate summaries of closing balances and cash owed.