More often than not, managing petty cash is an accountant’s worst nightmare. If not settled on time, petty cash transactions accumulate making the processing of same a rigorous and time-consuming affair. Especially for small scale businesses not managing petty cash expenses on a regular basis can result in internal as well as external conflicts. While managing document workflows manually is still the norm across many organizations locally and globally, embracing technology can simplify the process while also making it highly efficient & accurate.

What is petty cash?

Petty cash can be generally defined as a small fund available within an organization for miscellaneous expenses. Petty cash theft and mishandling are very common because often finance managers overlook petty cash reconciliation in favor of more ‘serious’ transactions that involve larger sums of money. In order to counter this, digitalization is becoming widely sought after. In an automated system, every transaction will be authorized and monitored centrally leaving no room for misappropriation.

What tools can we use for petty cash management?

DigiEx is a Sri Lankan product with great reviews. The app is easy to use, with a lot of inbuilt financial controls, highly encrypted for safety and can be installed free of charge. The app makes use of a pay-as-you-go model which means an initial investment is not required to explore the service. Other benefits of DigiEx include ability to integrate with existing finance management systems and the app acting as an archive for payment vouchers and invoices for later retrieval. The entire process is paperless and hassle free and can be easily navigated even without expert knowledge on accounting systems.

Is back-end automation only for large scale corporates?

It is a common misconception that modern technology is only for large scale companies. Services such as DigiEx are customizable according to specific scale and requirements of a business. In fact, smaller outfits can especially benefit from petty cash management which is likely to instill order and financial discipline. Without order and discipline businesses cannot scale or grow.

Is investing in digitalization worthwhile?

Given the global scenario, it is apt to say that digitalization will continue to be the ‘new normal’ even after Covid-19 is fully eliminated. A Bloomberg study found that as many as 39% in the US workforce considered quitting if their employers weren’t flexible about remote working from home. Among the millennial and Gen Z demographic, that figure was 49%. All these point to how digitalization will continue to be an integral part of business operations in years to come.

Even in Sri Lanka, many continue to work from home because it saves time, money & energy while also being safe as the pandemic is yet not fully eliminated. Against such a backdrop, in order to continue business operations smoothly, turning to technology can be seen as a prudent call

The government of Sri Lanka has announced a plan to build five “technology parks” to empower tech innovation which is believed to in turn enable Sri Lanka emerge a “technology-centric economy.” Aligning businesses with macro priorities is a smart and strategic way to survive under the current less than ideal circumstances.

All over the the world, the demand for automation is rising sharply. This is compelled by the contact and travel restrictions that came into place as a result of the pandemic outbreak. From public administration to education all services are now delivered online. Although one could argue digitalization widens disparity due to unequal access to technology, the positives outnumber the negatives. If all communities can be equally empowered with technology, which is an ambitious aspiration, digitalization can help Sri Lanka move forward in every conceivable regard.

Sources:
https://informi.co.uk/business-administration/what-petty-cash
https://www.bloomberg.com/news/articles/2021-06-01/return-to-office-employees-are-quitting-instead-of-giving-up-work-from-home