Petty Cash Definition
Petty cash, or petty cash fund, is cash that is used for a business’s small, miscellaneous expenses instead of using a check or other form of payment.
Petty Cash Extended Definition
Petty cash can be both convenient and economical when a business needs to reimburse an employee or cover a small charge, like postage stamps or donuts for a meeting.
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.
Petty Cash: Accounting & Beyond
Last Updated By
Christan Neff | Apr 17, 2023