Definition
Petty cash refers to a small amount of cash kept on hand by a business to cover minor or unexpected expenses that are too small to warrant a formal payment process.
Related Services
Cash management, accounting services, and financial controls help businesses manage petty cash and ensure proper tracking and reconciliation of small transactions.
Problem and Application
Improper handling of petty cash can lead to fraud, misuse, or inaccurate financial records, so it is crucial for businesses to implement clear policies and track all expenditures.
Conclusion
Petty cash is a useful tool for handling minor expenses, but businesses need strong internal controls to ensure it is managed effectively and transparently.
