Cash Handling Policy Template

This cash handling policy template has 3 pages and is a MS Word file type listed under our human resources documents.

Sample of our cash handling policy template:

CASH HANDLING POLICY OVERVIEW The establishment of strong internal controls for cash collections is necessary to prevent mishandling of funds and to safeguard against loss. In addition, strong internal controls are also designed to protect employees from inappropriate charges of mishandling funds by defining his/her responsibilities in the cash handling process. Cash handling includes but is not limited to coin, currency, checks, money orders, credit cards, accounts receivable charges, electronic funds transfers, and all cash equivalents (tokens, gift cards, parking tickets and stamps). All [COMPANY NAME] departments and staff handling should be aware that at any time, internal or external auditors may visit cash handling units to perform unannounced cash observations or cash counts. PURPOSE The purpose of this policy is to ensure control and safekeeping of business cash assets and to outline the acceptable use of cash at [COMPANY NAME]. These rules are in place to protect the employee and [COMPANY NAME]. SCOPE This policy applies to all employees of [COMPANY NAME]. POLICY AND PROCEDURES Handling money can be a challenge. In order to reduce errors, and the risk of loss, the company has developed the following list of policies and procedures that must be followed when handling cash or any other form of funds, as defined previously. Cash funds must not be left unattended Cash funds must be stored in a cash box within a register, safe or locked cabinet, to which access is restricted, preferably to the cashier or person in a department acting as a cashier. Money coming in must be separated from money going out Never put the money received in the petty cash, as this would cause errors and confusion in the accounting records. All money entering the organization must be paid promptly to the bank and recorded in the records before it is paid out again. Otherwise, this will result in a distortion of financial information. Always give receipts for money received This protects the person receiving the money and assures the person handing it over that it is properly accounted for. Receipts must be written in ink and from a numbered receipt book. Always obtain receipts for money paid out In situations where this cannot be possible, the cost of each transaction should be recorded immediately so that the amount is not forgotten and can then be transferred to a petty cash slip and authorized by a supervisor. Transfer surplus cash into the bank It is important to avoid leaving cash out in sight, as this is a temptation for thieves. In addition, it is much more profitable for the company to have its money in its bank account, because it generates interest. Counting the cash There should always be two people present when opening cash collection boxes in order to protect those handling money. Both should count the money and sign a receipt. Restricted access for the petty cash and the safe