Purpose:
The purpose of this cash policy is to establish guidelines and procedures for the handling, processing, and recording of cash transactions within our company. The policy aims to ensure the security, accuracy, and accountability of all cash-related activities.

Cash Handling Procedures:
2.1 Cash Receipts:
a. All cash receipts must be promptly recorded and deposited intact into the our company’s bank account. Cash should not be held overnight or for an extended period.
b. A designated employee should be responsible for receiving and documenting all cash receipts.
c. Cashiers should issue numbered receipts for all cash transactions and maintain a record of receipts issued.
d. Cashiers should conduct periodic reconciliations to ensure that the total amount of cash receipts matches the recorded transactions.

2.2 Cash Disbursements:
a. All cash disbursements must be approved in accordance with company policies and procedures.
b. Petty cash funds, if applicable, should be maintained in a secure location with limited access. A petty cash custodian should be appointed to oversee disbursements from the fund.
c. Cash disbursements should be supported by appropriate documentation (e.g., invoices, receipts) and approved by authorized personnel.

2.3 Cash Registers:
a. Cash registers and POS systems should be used to record sales transactions accurately.
b. Cashiers should be assigned unique login credentials to track individual transactions and minimize the risk of unauthorized access.
c. Cash registers and POS systems should be regularly audited to ensure accuracy and identify any discrepancies.

Cash Security:
a. Cash should be stored in secure locations, such as locked safes or cash registers, to prevent unauthorized access.
b. Access to cash storage areas should be limited to authorized personnel only.
c. Regular security checks should be conducted to identify and address any vulnerabilities.

Cash Reconciliation and Reporting:
a. Cash transactions should be reconciled on a regular basis, such as daily or at the end of each shift.
b. Reconciliation should involve comparing cash receipts and disbursements with recorded transactions to identify any discrepancies.
c. Discrepancies should be promptly investigated and resolved, and appropriate corrective actions should be taken.
d. Accurate cash records should be maintained for auditing and reporting purposes.

Training and Compliance:
a. Employees who handle cash should receive appropriate training on cash handling procedures, security measures, and fraud prevention.
b. Compliance with the cash policy should be regularly monitored and enforced.
c. Any suspected irregularities or violations of the cash policy should be reported to management or the designated authority.

Cash Float:
a. Establish a cash float, which is the initial amount of cash provided to cashiers or designated employees for making change and conducting cash transactions.
b. Determine the appropriate amount for the cash float based on the typical volume of transactions and the need to maintain sufficient change denominations.
c. Cashiers should be responsible for maintaining and reconciling their cash floats throughout their shifts.

Cash Deposits:
a. Clearly define the frequency and process for depositing cash into the company’s designated bank account.
c. We consider implementing dual controls, where two employees are involved in the deposit process to enhance accountability and reduce the risk of fraud.

Cash Handling Roles and Responsibilities:
a. Clearly define the roles and responsibilities of employees involved in cash handling, including cashiers, cash custodians, supervisors, and managers.
b. Outline the specific tasks and duties assigned to each role, ensuring segregation of duties where appropriate to maintain checks and balances.

Cash Overages and Shortages:
a. Establishing procedures for handling cash overages and shortages that may occur during the reconciliation process.
b. Determine the threshold for reporting and investigating overages and shortages.
c. Document the steps to be taken when discrepancies are identified, such as conducting a thorough investigation, notifying management, and implementing corrective actions.

Fraud Prevention and Detection:
a. Implementing measures to prevent and detect cash-related fraud, such as regular audits, surprise cash counts, and internal controls.
b. Promoting an environment of ethical conduct and encourage employees to report any suspicious activities or concerns.

Documentation and Record Keeping:
a. Specifying the required documentation for all cash transactions, including receipts, invoices, and supporting evidence.
b. Establishing a record-keeping system to maintain accurate and organized records of cash transactions, reconciliations, and related documentation.
c. Determining the retention period for cash-related records in compliance with legal and regulatory requirements.