Petty Cash

Petty cash is a small fund of physical cash that organizations keep on hand to pay for minor, incidental expenses that are impractical to pay by check or electronic transfer. Common uses include purchasing office supplies, reimbursing staff for minor out-of-pocket expenses, or covering small, urgent needs. The petty cash fund is usually managed by a custodian who is responsible for disbursing cash and maintaining accurate records of all transactions. Periodically, the fund is replenished by submitting receipts and a reconciliation report to ensure the fund's balance is restored to its original amount. Maintaining and tracking petty cash is essential for accurate financial reporting and internal controls.