Petty Cash
A small fund maintained for minor business expenses, managed using an imprest system where the fund is periodically replenished to its established amount.
Petty Cash
A small amount of cash kept on hand to pay for minor business expenses where writing checks or using credit cards would be impractical or inefficient.
For example, an office might maintain a $200 petty cash fund to cover small expenditures like courier fees, office supplies, or refreshments for meetings, with receipts documenting all disbursements.
Petty cash is typically managed using an imprest system where the fund is established at a fixed amount and replenished to that amount after documenting expenses. Proper controls include designating a custodian, requiring receipts for all disbursements, performing surprise counts, and periodic reconciliation to prevent misuse.