All 23 Reconciliations questions
More in Reconciliations
How does automation (reconciliation software) improve the process? How do you reconcile accounts receivable to revenue? What is a three-way reconciliation (e.g., for trust/client accounts)? What makes a reconciliation 'review-ready' for audit? What is the account reconciliation process at month-end close? How do you deal with aged, unexplained reconciling items? How does reconciliation support the financial-close controls and audit? How do you reconcile cash across the bank statement, cash book, AR receipts, and AP payments? How do you handle timing differences in month-end reconciliations? How do you reconcile accounts payable to the trial balance and supporting sub-ledgers at consolidation?
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Accounts Payable & Receivable › Reconciliations

How do you reconcile petty cash and expense floats?

Intermediate

Answer

Petty cash reconciliation compares the fixed float to cash on hand plus vouchers/receipts for amounts spent; the two must equal the imprest amount. Differences indicate missing receipts or errors. On replenishment, expenses are posted and the float restored to its set level, keeping the control tight.
Imprest float 500. Cash on hand 120 + receipts 375 = 495.
  Shortage 5 to investigate; replenish 380 to restore 500.
Real-world example A petty-cash count comes up $5 short of the float plus receipts, prompting a review before replenishment.

Common follow-ups: What is an imprest system? | What does a shortage indicate?

Cash Application Reconciliations Payment Runs
All 23 Reconciliations questions