KEYTAKEAWAYS
Discover the purpose and utility of petty cash, which serves as a resource for covering minor, everyday expenses like postage and office supplies.
CONTENT
DEFINITION
Petty Cash – Funds for Minor, Incidental Expenses
Petty cash is a financial mechanism commonly employed by organizations and businesses to address minor, day-to-day expenses of a relatively small nature. These funds are designated for incidental purchases, typically involving low-cost items or services that do not warrant the use of formal payment methods.
This system is advantageous for streamlining the management of small expenditures, such as office supplies, postage, and minor repairs, without the need for continuous check writing or electronic transactions. The funds are usually held in a physical cash form, stored securely and typically managed by a designated custodian.
Understanding the concept of petty cash is essential for those responsible for maintaining and controlling finances within an organization, as it helps ensure a practical and efficient approach to managing minor disbursements.
More From CoinR
CoinRank Finance Dictionary :
CoinRank Finance Dictionary :
CoinRank Finance Dictionary :
ank
