A petty cashier is needed if an entity has a large volume of small transactions daily. However, note that what is determined as a large volume is determined by the entity. Also, it can be based on industry norms.
Definition of Petty Cashier
A petty cashier is a junior staff of an entity that handles large volumes of small expenses that occur daily within an organization.
To avoid too many transactions in the main cash book, a petty cashier is employed to handle small expense transactions daily. This cashier is a junior staff of an organization.
Daily, he or she receives a sum of money that is equal to the limits allowed by the organization. If he uses up the cash limit during business hours he will request more cash from the main cashier. He will be replenished with an amount that equals the limits. For example, if the limit is 100,000 Naira. And he or she has a petty cash balance on hand of 18,000 Naira. The main cashier will replenish the junior cashier with 82,000 Naira.
Specifically, he or she pays for small expenses made by other staff in the organization and to customers or clients. The junior cashier may be allowed to receive small cash that came into the business from debtors and others. At the end of the day, he balances the money with him and sends it to the main cashier for safekeeping.
The petty cashier is expected to balance the petty cash book at the end of the day. The amount in the books must be equal to the amount in his hands. However, this may not be true in some cases. The balance in hand may be higher or lower than the balance in the book. If the cash with him is higher than that in the books, it is a surplus of cash. However, if it is lower, it is a deficit of cash.
If this is so, there is a need to reconcile the difference through a process known as call over of the day’s transaction vouchers. From the call over he or she may find out what causes the difference and correct it immediately.
The petty cashier is responsible for paying or receiving small cash expenses. In large organizations, there are large volumes of transactions that occur daily. To avoid overburdening the main cashier, a petty cashier is employed to handle a certain amount of transactions. Money is given to him or her and he or she returns the balance to the main cashier daily.