Petty cash is a small, set amount of physical cash kept on hand to cover minor, everyday expenses quickly and conveniently without needing to use a card or issue a reimbursement. It is typically used for things like small supply purchases, last-minute needs, or situations where cash is the easiest option. At Tree of Life, petty cash also includes the cash kept in drawers for making change during events, all of which is tracked together as one total balance in Aplos. The purpose of maintaining petty cash is to ensure these small transactions are handled efficiently while still being properly recorded, so that our financial records remain accurate and every dollar is accounted for.

Petty Cash Reconciliation Guide (Simple + Repeatable)

Purpose

To make sure:

What Aplos says = what you physically have
Cash is being used and recorded correctly

Your Setup

Petty Cash Total = $300

This includes:

Cash drawers (for events/change)
Petty cash box

All physical cash is treated as ONE pool

🗓️ When to Reconcile

Weekly (ideal) OR
After events OR
Before/after replenishing cash

✅ STEP-BY-STEP RECONCILIATION

Step 1: Count ALL cash

Count everything:

Drawer 1
Drawer 2
Petty cash box

Add it together

Write:

Total Cash on Hand = ______

Step 2: Check Aplos balance

Go to:

Petty Cash account

Write:

Aplos Balance = ______

Step 3: Compare

These numbers should match:

Cash on Hand = Aplos Balance

🔍 IF THEY MATCH ✅

You’re done. 🎉

🚨 IF THEY DON’T MATCH

Step 4: Look for missing entries

Ask:

1. Was cash spent but not recorded?

Enter:

Expense
Paid from: Petty Cash

2. Was cash used for an event and not deposited?

Remove extra cash and:

Record deposit to bank (income)

3. Was petty cash replenished but not recorded?

Enter:

Transfer from Checking → Petty Cash

Step 5: Recount + recheck

Repeat until:

Aplos = Real Cash

Step 6: If still off (rare)

Record a small adjustment:

Short → Misc Expense (Cash Over/Short)
Over → Misc Income

🔁 NORMAL CASH FLOW (Cheat Sheet)

When you SPEND cash

Record expense → Paid from Petty Cash
Cash decreases

When you RUN AN EVENT

Start with drawer base (e.g., $100)
End with more cash

Remove the extra

Deposit to bank

Record income

Do NOT record this through petty cash

When cash gets LOW

Add money from bank
Record: Transfer Checking → Petty Cash

GOLDEN RULES

Petty cash should ALWAYS equal real cash
Never “guess” or force numbers to match
Only record what actually happened
Don’t mix sales activity with petty cash expenses
Fix issues immediately—don’t let them pile up