petty cash

Petty cash refers to a small amount of funds set aside by a company or organization for making small, everyday purchases or transactions that are not appropriate for the use of formal expense accounts or checks. It typically consists of a limited amount of physical cash held on hand, usually managed by a designated employee or department, and is used for purposes like reimbursing employees for minor expenses, making small purchases of office supplies or food, and handling small miscellaneous expenses. Petty cash serves as a convenient way to handle small and immediate expenses without the need for complex paperwork or formal approval processes.