Petty cash is a small amount of discretionary funds in the form of

cash In economics, cash is money in the physical form of currency, such as banknotes and coins. In book-keeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-i ...

used for minor expenditures. The most common way of accounting for petty cash expenditures is to use the

imprest system The imprest system is a form of financial accounting. The most common is petty cash. The basic characteristic of an imprest system is that a fixed amount is reserved, which after a certain period or when circumstances require, because money was ...

Audit controls

Oversight of petty cash is important because of the potential for abuse. Examples of petty cash controls include a limit on disbursements and monthly

audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." Auditing al ...

s by someone other than the custodian. Use of petty cash is sufficiently widespread that vouchers for use in reimbursement are available at any office supply store. The petty cash daybook is one of the daybooks used in bookkeeping and the

double-entry bookkeeping system Double-entry bookkeeping, also known as double-entry accounting, is a method of bookkeeping that relies on a two-sided accounting entry to maintain financial information. Every entry to an account requires a corresponding and opposite entry to a ...

References

{{Reflist Payments Accounting journals and ledgers de:Kasse#Portokasse