Petty Cash
Financial Dictionary — Cash Management & Controls
Definition
A small amount of cash kept on hand for minor expenses and reimbursements.
Detailed Explanation
Petty Cash is a small cash fund kept for minor, frequent expenses; it should be controlled through limits, vouchers, and periodic reconciliation to reduce misuse and support accurate expense recording.
Common Uses
- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.
- Used when setting KPIs, policies, procedures, and improving processes.
Practical Example
- Example: Management applies **Petty Cash** when designing policies and monitoring performance against targets.
Why This Term Matters
- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.