Magazine article Management Services

Petty Cash Conundrums for UK Businesses

Magazine article Management Services

Petty Cash Conundrums for UK Businesses

Article excerpt

NEW research undertaken by the Argos for Business part of the Home Retail Group, has revealed that petty cash confusion is costing each UK business, on average, £355 a year. This may seem insignificant, but with 5.2million businesses operating in the UK and the average UK employee salary reported at £25,500, the combined total of mishandled petty cash could be used to boost the UK workforce by an additional 72,000 people.

Many UK businesses succumb to pitfalls by unwittingly relying on outdated petty cash systems and by failing to communicate to employees how to keep track of petty cash. Without realising, businesses are losing control and accuracy when it comes to spending. The research reveals that the biggest barriers to effective management of petty cash are misplaced receipts (43%), and overly complicated processes (12%).

Healthcare (17%) and retail (12%) accounted for the largest sectors affected by the issue, while ironically, over a third of finance departments (37%) were highlighted by employees as being responsible for the mismanaged petty cash issue, with line managers coming a close second (15%). …

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