Petty cash reconciliation

Reconcile a fixed petty cash fund by comparing the physical cash counted with the supported receipts. Enter the fixed fund amount and counted cash, then list the receipts that have not yet been replenished. The tool shows cash plus receipts, the amount over or short, and the cash needed to return the cash count to the fixed fund amount. Review any difference before using the replenishment result.

Worked example: IRS petty cash illustration

From the daily cash receipts illustration in IRS Publication 583. The cash plus slips equals the fixed fund.

How it works

Method source: IRS Publication 583. Amounts are calculated in whole cents. The tool reports the arithmetic of your inputs and does not update your records.

Count cash separately from receipts

Enter the fixed amount of the petty cash fund first. Count the physical cash on hand and enter that total in the cash counted field. List the supported receipts or petty cash slips that have not yet been replenished. Keep the physical cash count separate from the receipt amounts, because the calculator adds them together to measure how much of the fund is accounted for.

IRS Publication 583 describes a fixed petty cash fund and says the unspent cash plus the amounts on the petty cash slips should equal that fixed amount. The IRS also describes making a slip and attaching a receipt when a payment is made. Use those records when entering each row. A calculator row by itself is not proof that an expense occurred or that the counted cash was present.

Interpret over and short

The difference is the accounted amount less the fixed fund. A positive result is an overage relative to the fixed amount entered. A negative result is a shortage. Check the cash count, receipt amounts and fixed fund figure if the result is not balanced. Do not add a made-up receipt or change the fund amount simply to bring the difference to zero.

Check whether a receipt was entered twice or whether a supported payment is missing from the list. Review any cash added to the fund since the last count against your own records. This tool does not assign an accounting entry for a shortage or approve a reimbursement. Keep unresolved differences visible while you obtain the documents needed to explain them.

Review the replenishment amount

The cash to restore fund result is the fixed fund amount minus the cash counted. When the fund reconciles, that amount equals the supported receipt total. The IRS illustration describes restoring the fund by writing a check for the outstanding petty cash slips. Compare those two results before using the restoration amount in your own replenishment process.

If the fund does not reconcile, the calculated cash gap and supported receipt total can differ. Treat that difference as a reason to investigate before replenishing. If counted cash exceeds the fixed fund, the cash to restore result is negative; it identifies excess cash relative to the entered fund rather than suggesting a negative reimbursement. Review the count and source of the excess with your records.

Preserve the count record

Use a short generic reference for each receipt so the exported schedule can be matched to documents you retain separately. Export CSV to keep the cash count, receipt list, difference and restoration calculation. Print the worksheet with the slips if you need a paper package. Check any browser-restored entries before a new count, and clear the old worksheet once you have retained the completed record.

Questions about this tool

Official sources

• IRS Publication 583: checking account reconciliation and recordkeeping illustration

Data as of 2026-10-05. Published illustrations are static teaching cases, not live account data.