A company's first petty cash float should begin with a documented funding amount and named custodian. Transferring money into a cash box is not itself evidence of a business expense. Keep funding and supported spending distinguishable from the outset.

Hands signing a document at an office desk
Illustrative photograph by Pavel Danilyuk.

Record the opening position

Retain approval for the float, the source of funds, date, currency and amount handed over. Count the cash with the receiving custodian and record the accepted starting balance. Keep it separate from the founder's personal wallet or another company's cash.

Define permitted use

Agree who may spend, what supporting documents are required and who reviews replenishment. Set a practical route for exceptions. Do not use a petty cash label to avoid the company's ordinary approval process.

Example: replenishment after the first week

The custodian provides receipts and remaining cash for review. Reconcile supported spending and cash on hand to the amount available, recording any unexplained difference. A replenishment payment should follow the approved process instead of concealing a shortage.

Make the record usable

Keep a dated cash log and source documents with appropriate access. Give the bookkeeper enough information to distinguish funding, expenditure, returned cash and unresolved items. Review custody when staff change, including a fresh count and handover record.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For corporate secretarial and company administration support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.