Petty Cash
What is Petty Cash?
Petty cash is a small, readily available fund that companies maintain to cover incidental business expenses without formal invoicing or expense reports. Common uses include parking fees, office supplies, snacks, or emergency travel costs.
In corporate travel, petty cash may reimburse employees for minor trip-related expenses. Organizations typically set usage limits, require receipts, and restrict access to certain employees or departments. Digital tracking tools and petty cash logs are often used to maintain accountability and prevent misuse.
Examples Of Petty Cash Usage
1.
Taxi Fare
A Company Reimburses An Employee $10 From Petty Cash For A Taxi Ride To A Client Meeting.
2.
Office Supplies
An Office Manager Uses Petty Cash To Purchase Coffee And Snacks For A Last-Minute Team Meeting.
3.
Travel Incidents
A Corporate Traveler Uses Petty Cash To Cover Baggage Storage Fees At The Airport.
Frequently Asked Questions About Petty Cash
1.
What expenses qualify for petty cash use?
Petty cash is used for small, necessary business costs such as parking, office supplies, or minor travel expenses.
2.
Is petty cash reimbursable?
No, employees receive the money directly from the petty cash fund for minor expenses.
3.
How is petty cash tracked?
Companies track petty cash using logs, receipts, and financial software to monitor usage and prevent misuse.
4.
What happens if petty cash runs out?
The fund is replenished from the company’s main account, usually after a financial review.
5.
Can petty cash be used for personal expenses?
No, petty cash is strictly for business-related costs; personal use may result in disciplinary action.