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- Limit the amount of pettty cash (to suit your business)
- Limit the amount per purchase
- Define its use (what could be purchased)
first identify impotant purchasing which is use in direct material and see the cash if it is sufficient so purchas it. if purchas list is contain many product so you need to screening all item as per cash availability and made purchase. if all item is required so need to manage remaining cash
Review petty cash every2 weeks , check at randome prices of item purchases
Check with the requester and, if items purchased repeat enough , make annual contract and negotiate with supplier to fix. Price and get discount , inform supplier that you will get these items on monthly basis and to be paid by cheque atmonth end
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