Small cash fund maintained by production departments for minor immediate expenses – allows quick payment for unexpected items like parking, tips, small supplies, or emergency purchases without formal purchase order processes or accounting delays.
What is Petty Cash?
Petty Cash (Handkasse) is a cash fund for small expenses on film productions. It allows for quick payment of unexpected or urgent minor expenses without bureaucratic delays.
Basic Principle
| Aspect | Description |
|---|---|
| Purpose | Pay small expenses in cash |
| Amount | Limited, regularly replenished |
| Management | Department Head or Coordinator |
| Documentation | Receipts required |
Typical Amounts
| Production Size | Petty Cash |
|---|---|
| Low-Budget | $200-500 |
| Mid-Budget | $500-2,000 |
| Major Production | $2,000-10,000 |
| Per Department | Varies |
What is it Used For?
| Category | Examples |
|---|---|
| Parking Fees | Meters, Lots |
| Tips | Service Staff |
| Emergency Supplies | Tape, Batteries |
| Small Purchases | Under Limit |
Department-Specific
| Department | Typical Expenses |
|---|---|
| Camera | Tape, small parts |
| Grip | Hardware, clips |
| Electric | Light bulbs, gels |
| Props | Small props |
| Set Dressing | Decor items |
Management
| Step | Description |
|---|---|
| Disbursement | From Production Office |
| Tracking | Record every expense |
| Receipts | Always collect |
| Reconciliation | Reconcile regularly |
| Replenishment | Top up as needed |
Petty Cash Envelope
| Item | Description |
|---|---|
| Cash | Current balance |
| Receipts | For expenses |
| Log Sheet | Documentation |
| Total | Always = Starting amount |
Receipt Requirement
| Requirement | Description |
|---|---|
| Receipt | For every expense |
| Description | What, for what |
| Signature | Who made the expense |
| Date | When |
Reconciliation Formula
| Item | Calculation |
|---|---|
| Starting Amount | $500 |
| - Expenses | (Receipts) $327 |
| = Cash on Hand | $173 |
| Total | Must equal $500 |
Limit Per Expense
| Amount | Requirement |
|---|---|
| Under $50 | Receipt only |
| $50-100 | Receipt + Approval |
| Over $100 | Formal Purchase Order |
| Varies | Per production |
Replenishment
| Step | Description |
|---|---|
| 1 | Collect receipts |
| 2 | Petty Cash Report |
| 3 | To Accounting |
| 4 | Check or Cash |
| 5 | Replenish the fund |
Production Accountant Role
| Task | Description |
|---|---|
| Disbursement | Initial fund |
| Control | Regular checks |
| Reconciliation | Balancing |
| Tracking | Within budget |
Best Practices
| Practice | Reason |
|---|---|
| Reconcile daily | Control |
| All receipts | No exceptions |
| Adhere to limits | Budget control |
| Secure storage | Cash protection |
Common Problems
| Problem | Solution |
|---|---|
| Missing receipts | Log with witnesses |
| Over limit | Obtain approval |
| Cash discrepancy | Clarify immediately |
| Misuse | Tighten controls |
What NOT from Petty Cash
| Category | Reason |
|---|---|
| Personal expenses | Not allowed |
| Large purchases | PO required |
| Wage advances | Different process |
| Equipment rental | Formal rental |
Documentation
| Document | Content |
|---|---|
| Petty Cash Log | All transactions |
| Receipts | Original vouchers |
| Report | Summary |
| Sign-Out Sheet | Upon handover |
Wrap Reconciliation
| Step | Description |
|---|---|
| All receipts | Submit completely |
| Return remainder | To production |
| Final Report | Overall accounting |
| Signature | Confirmation |
Tax Relevance
| Aspect | Description |
|---|---|
| Documentation | Essential for audit |
| Business Expense | Deductible |
| Keep receipts | Years after production |
| Compliance | Tax regulations |
International
| Region | Particularity |
|---|---|
| USA | Standard system |
| UK | Called "Float" |
| Germany | Handkasse, stricter |
| Canada | Similar to US |
Best Practices
| Practice | Reason |
|---|---|
| Small amounts | Stay under limit |
| Immediate receipts | Don't forget |
| Reconcile regularly | Maintain overview |
| Store securely | Protect cash |
Today
Petty cash remains an indispensable tool in film production. Despite increasing digital payments, there are always situations that require immediate cash payment. Careful management and documentation of petty cash are essential for budget control and compliance in production accounting.
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