Petty Cash Definition
Petty cash, or petty cash fund, is cash that is used for a business’s small, miscellaneous expenses; rather using a check or other form of payment.
Petty cash can be both convenient and economical when a business needs to give change to a customer, reimburse an employee, or cover a small charge like postage-due. The amount in a petty cash fund will depend upon the needs of the business, usually ranging from $50 to $500. Recommended procedures include keeping detailed records with receipts, assigning one person to be responsible, and establishing a system for replenishing the fund.
Related Blog Article:
Petty Cash: Why You Want It and How to Use It