Petty cash, like all money, can be an intimidating task in a production. It doesn’t have to be scary! Previously, we talked about how to master budgeting and the hidden costs of video production. Both times, we concluded that, once you get past the initial stress of money, these budgeting skills take your campaigns to the next level. Petty cash is no different!
Whether you’re a production accountant or an aspiring production professional, you should know about petty cash. If you’ve worked on set before, there’s a chance you’ve used petty cash, even if you didn't know what it was. Let’s explore the basics of petty cash and how it can unleash your production’s success!
What is petty cash?
Petty cash is money allocated for smaller, specific production expenses that can or need to be paid in cash. These expenses include purchasing last-minute props, food, or set construction materials. However, petty cash also covers unexpected costs during production, which can save you from delays and mishaps!
While petty cash is cash at hand, it is not a freely flowing spending source. All petty cash is tracked, so your finances are organized down to the smallest details. Petty cash will cover all everyday expenses of production, and that will be accounted for in your final budget.
Proper petty cash management involves an established policy. There is structure to the cash flow even before the production starts. Therefore, petty cash is the perfect balance of pre-planning and fast-paced resource management!
How does petty cash benefit production?
Financial Expertise
Petty cash is an invaluable tool for your team. When you utilize petty cash, you practice financial and organizational skills. From detailed record-keeping to critical thinking, anyone working with petty cash is bound to develop expert budgeting skills.
On the organizational side, every aspect of petty cash flow improves your budgeting expertise. By collecting and compiling receipts after each transaction, you’re keeping the overall budget at the front of your mind. Moreover, filling out cash vouchers, which are documents that record the date, amount, recipient, and purpose of a purchase, reinforces financial awareness.
Employee Efficiency
Petty cash is crucial in the overall financial management of your campaign. On the smallest level, it prevents issues because it covers unexpected costs at any point. When you have this money ready, your production operates smoothly. Your team has the tools at their disposal to avoid inefficiencies because they are prepared for unforeseen events. Even if the petty cash fund is not spent, the awareness of its presence has everyone thinking ahead!
In addition to building financial expertise, petty cash allows teams to build trust in each other. Everyone feels better at work when they are trusted. If you are trusted to handle company assets, such as money, your motivation is even higher. Why? Because you feel empowered! Crew members who can access petty cash to solve problems feel that they can rely on their professional judgment. Therefore, they’ll be confident when thinking on their feet, so your production is the best that it can be!
The Power of Petty Cash
Hopefully, by now we have convinced you of the benefits petty cash brings to your productions. At Plaid Pony Productions, we embrace any practices that boost our financial expertise, and skillful petty cash flow is one of them!
In the end, petty cash is a small but mighty force that keeps your team flexible while ensuring you stay within your production’s budget. We can't wait to see the campaigns you make with your improved financial efficiency!
