The Canadian penny will no longer be distributed after 4 Feb, 2013, but businesses can continue to accept them. Wondering how to deal with GST/HST at the check-out counter? Add sales tax to the price, then round to the nearest nickel.
An office petty cash fund is a useful tool for covering small expenses. Limit access to the responsible staff member(s), and reconcile the fund regularly to catch errors.
Keep cheques in a safe location. Signed blank cheques should be avoided – but if you have “emergency cheques” with a board member’s signature, make sure they’re under lock and key.
Use a regular supplier but don’t want to use petty cash around the office or don’t have a company credit card? Try using a prepaid gift card in a low amount and treating it in the books like petty cash.
Many charities require two authorizing signatures on cheques– but there is no limit no the number of signing officers you can appoint. Give yourself a couple of extras!
Deposit cash regularly. The less you keep on your premises the better. Investigate after-hours deposit arrangements with your bank.
Your investment policies should provide guidance on risk tolerance. For many charities, preserving capital is more important than a high return.
Business chequing accounts generally pay little or no interest. Move excess cash to an interest-bearing investment account.
When you have surplus cash to invest, shop around for the best product for your organization. Your bank or credit union may have the right solution in the form of a savings account, GIC or other short-term investment. For larger sums, a brokerage account may be preferable.
Even when interest rates are low, you might as well invest surplus cash. Decide on a minimum bank balance that (along with anticipated bank deposits) will let you meet rent, payroll and other day to day costs – then invest the excess.