How to Account For Petty Cash

• There should also be a column for deposits to the account to keep track of when the fund is replenished. The first payment to petty cash should be placed in the log as a petty cash deposit. Then all the transactions can be deducted from this amount.[7] With the first initial payment to petty cash, the custodian should start a log of the transactions that go through the petty cash box. This can be a simple hand written accounting log or an online spread sheet kept up with by the custodian. The petty cash custodian should keep up with each transaction by placing it in the log. There should be a line for the description of the transaction, such as office supplies or shipping charge. There also needs to be a column for the amount spent and the person who used the petty cash.