FCC Admin Tasks - Reconciling Petty Cash

Reconciling Petty Cash

Purpose: Ensure accurate tracking and accountability of petty cash by following this reconciliation procedure.

Frequency: Perform reconciliation weekly or twice a month, preferably by someone other than the person who handles cash transactions.

As cash is disbursed or added to Petty Cash, the transaction should be added to the paper record that is kept with the Petty Cash. As needed you can print copies of the Petty Cash Ledger.pdf.

🔍 Who Should Perform This?

A person not involved in dispensing or receiving petty cash should carry out the reconciliation.
This helps maintain integrity and avoids conflicts of interest.

Step-by-Step Reconciliation Process

1. Retrieve the Cash Bag

Securely take possession of the petty cash bag to begin the reconciliation process.

2. Count the Cash

Physically count all cash present in the bag.

3. Open Petty Cash Register in QuickBooks

Navigate to: Chart of Accounts in QuickBooks.
Filter for "Petty" and click on View Register.

4. Start the Reconciliation

In the top right corner, click Reconcile.
For the Statement Ending Balance, enter the total counted in Step 2.
Set today’s date as the reconciliation date.
Click Start Reconciling.

5. Review Transactions

Select all transactions shown.
Review the difference displayed at the top of the screen.

6. Troubleshoot Any Differences

If the difference is not zero:
- Compare the paper ledger with transactions recorded in QuickBooks.
- Look for:
  1. Missing transactions
  2. Incorrect amounts
  3. Duplicates
  4. Make necessary additions or corrections in QuickBooks.
- If You Can’t Find the Difference:
  1. QuickBooks will record a reconciliation discrepancy.
  2. Document the issue clearly on the paper ledger.

7. Finish and Document

Click "Finish now" in QuickBooks to complete the process.
Record the final reconciled balance in the paper ledger.

Need Help?

Contact the church finance administrator or designated support person.