Petty cash?

[kaituna]

This may be a really stupid question but how does one account for petty cash expenses?

I have an accountant and I just give him my receipts, cheque stubs, bank statements etc every couple of months and he looks after everything.

But someone said to me at the weekend if I buy e.g. a book of stamps from a machine and have no receipt then this is classed as peety cash and should be claimed as an expense. But how do I record this for my accountant? Do I just do up a list of expenses I don't have receipts for and give him that?

Sorry but I know absolutely zilch about accounting procedures so hoping someone can advise...

 

[ButtermilkJa]

Petty Cash is a sum of money, usually kept at the employers place of work, used to reimburse employees for expenses they pay for out of their own pocket (eg: stamps, stationery etc.).

If you are self-employed (sole trader or owner/manager of Ltd Co.) you simply add these up each month and write yourself a cheque for that amount, as you would with normal expenses.

However, you will still need to keep receipts! Technically speaking you can not claim for something you have no proof of purchasing. Although I'm sure the odd book of stamps from a vending machine would not be questioned.