Petty cash is a nominal amount of money readily available to pay for expenses that are too small to write a check or use a credit card.#
- In large corporations, each department may have its own petty cash fund.
- The petty cash fund can be used for stationery, customer cards, flowers, employee lunches, or employee reimbursements.
- The main advantages of petty cash are that it is fast, convenient, easy to understand and use.
- Disadvantages of petty cash include its vulnerability to theft and misuse, as well as the need for periodic monitoring and balancing.