[GNC] Be careful with `petty cash'

[Michael Hendry]

> On 10 Sep 2020, at 09:52, Chris Green <cl at isbd.net> wrote:
> 
> On Wed, Sep 09, 2020 at 05:42:05PM +0100, Michael Hendry wrote:
>> 
>> This probably won’t be an issue for Chris Green, who would be better served 
>> by an Undeposited Funds asset account. 
>> 
> Yes, I think you're right. We don't have any 'petty cash' in any of
> the normal senses.  We do have quite a bit of cash of course as that's
> what comprises most of our collections.  However we never pay expenses
> in cash, it's always by cheque even for quite small amounts.
> 
> I think the best approach is either:-
> 
>    1 - Record the amounts in their different categories as required,
>    e.g. 'collection' or 'offertory box' and simply record the same
>    paying-in slip number against both transactions.
> 
>    2 - Have, as you suggest, an intermediate "Undeposited Funds asset
>    account" where cash is recorded as it's collected and then another
>    transaction records when it's paid into the bank.
> 
> Given the very small PCC I'm managing I think 1 above will be fine.  I
> record the date of the collection in the Description and the
> transaction date is the date that the cash gets credited to the bank
> account.


I prefer 2 because the act of paying-in is a transaction distinct from the receipt of the cash, and may include cash received on several different dates. As well as being an accurate representation of what happened, it eases trouble-shooting when (e.g.) you can’t reconcile the bank account.

Regards,

Michael