Posted on October 26, 2023

How to Avoid Common Petty Cash Mistakes with iPay's New Solution

By: iPay

Introduction:

Petty cash is a small amount of money businesses keep for small expenses, such as office supplies, postage, and travel costs. It can be a source of big headaches for companies if it needs to be appropriately managed. According to a recent survey, 60% of businesses in Kenya need help managing petty cash effectively.

Common petty cash mistakes:

Here are some of the most common petty cash mistakes and how to avoid them:

• Keeping track of expenses: Improper tracking can lead to overspending, lost receipts, and inaccurate accounting records. Keep a detailed history of all petty cash expenses to avoid this mistake.
• Not reconciling petty cash: This compares the petty cash records to cash on hand. If the two don't match, there is a problem that needs to be investigated. To avoid this mistake, reconcile petty cash regularly.
• Not having a petty cash policy: A petty cash policy is a document that outlines how petty cash should be managed. It should include things like the maximum amount of petty cash that can be kept on hand, who is authorized to use petty cash, and what types of expenses are eligible for petty cash reimbursement. Have a policy to avoid petty cash mistakes and ensure all employees know it.
• Not using a petty cash management system: A petty cash management system can help businesses avoid many common petty cash mistakes. These systems can help companies to track expenses, reconcile petty cash, and enforce policies.

iPay is launching a petty cash management solution that will help businesses in Kenya avoid common petty cash mistakes. This solution will provide businesses with a simple and easy-to-use way to track expenses, reconcile petty cash, and enforce petty cash policies.

Features of iPay’s petty cash management solution:

• Expense tracking: iPay's solution for managing petty cash enables businesses to monitor all their expenditures effortlessly, ensuring that companies adhere to their budgets and avoid excessive spending.
• Petty cash reconciliation: We developed this solution to simplify the process of regularly balancing petty cash accounts for businesses, which aids in identifying any inconsistencies and serves as a safeguard against fraudulent activities.
• Petty cash policy enforcement: This innovation empowers businesses to enforce their policies effectively. This solution ensures that petty cash is utilized appropriately and that employees adhere to established rules.

Is your business struggling to manage petty cash? If so, iPay’s petty cash management solution is the solution. Contact us today for updates on the new petty cash solution. Or Register today to get activated.

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