Petty Cash

Petty Cash is used for small, immediate expenses where using cards or bank transfers may not be practical. Companies typically assign a custodian to manage the fund and maintain records of all transactions. Each expense is documented with receipts, and the fund is replenished periodically through a formal accounting process. While the amounts are small, proper tracking is important to prevent misuse and ensure accurate financial reporting. For startups, petty cash helps handle quick operational needs without disrupting workflows.