Final answer:
To keep track of petty cash effectively, maintain regular records of all transactions and keep all receipts, noting any cash spent where receipts are not available. This practice aids in managing money and preventing overdraft fees. If accused of theft due to cash drawer shortages, detailed records can help establish innocence.
Step-by-step explanation:
According to the text provided, the best approach to keep track of petty cash is to manage money regularly and maintain a clear record of cash flow. This involves making sure you keep up to date with all transactions and retain receipts for every item or service purchased. For instances where obtaining a receipt is not possible, such as using a vending machine, it is advised to note the amount spent on a piece of paper or a smart phone. This systematic tracking helps in avoiding issues such as overdrafts and the accompanying fees for insufficient funds.
In the scenario where a retail store employee's cash drawer comes up short, the employee can employ these cash management techniques to demonstrate their innocence and address the accusation of theft. Keeping a meticulous record of all transactions could provide evidence that the missing funds are due to a mistake or oversight rather than theft. It is also important for the employee to address the label of being a thief professionally and diplomatically, possibly by requesting a review of the cash handling procedures and the store's surveillance footage to corroborate their side of the story.