Petty Cash Reconciliation Calculator
Where the Small Cash Drawer Actually Stands
Petty cash is the one part of a company's books that has to be physically counted rather than pulled from a bank statement. Coffee runs, parking reimbursements, small office supplies — each receipt chips away at the starting balance, and the only way to know if the drawer is right is to reconcile what should be there against what's actually there. This calculator does that comparison and tells you immediately whether the drawer is over, short, or balanced.
The Formula
Variance = Actual Cash Counted − Expected Cash
A positive variance is an overage (more cash than expected); a negative variance is a shortage (less cash than expected).
Worked Examples
| Starting Float | Receipts Total | Expected Cash | Actual Cash Counted | Result |
|---|---|---|---|---|
| $500.00 | $310.00 | $190.00 | $185.00 | Shortage of $5.00 |
| $500.00 | $310.00 | $190.00 | $200.00 | Overage of $10.00 |
Where This Calculation Matters
- Routine bookkeeping controls — regular petty cash reconciliation is one of the simplest internal controls a small business can maintain, and it's often the first thing an external auditor checks for consistency.
- Catching recording errors early — a small, recurring shortage often points to an unrecorded expense or a missing receipt rather than theft, and catching it early prevents it from compounding.
- Replenishment timing — the expected cash figure tells you exactly how much to replenish the float back to its starting level.
- Accountability — documenting variance at each reconciliation creates a clear audit trail for whoever manages the petty cash fund.
How to Use This Calculator
- Enter the Starting Float — the amount the petty cash drawer began the period with.
- Enter the Receipts Total — the sum of all receipts collected for expenses paid from petty cash.
- Enter the Actual Cash Counted — the physical amount remaining in the drawer.
- Select Calculate to see whether the drawer is balanced, over, or short, and by how much.
Related Calculations
Check whether your full set of accounts stays in balance with the General Ledger Balance Calculator, or verify a single debit-and-credit pair with the Double Entry Balance Calculator.