What is Petty Cash Used for?
Most businesses maintain a petty cash account, in which a certain amount of money is stored for minimal expenditures that require immediate reimbursement. According to the Business Owner’s Toolkit, the petty cash fund should be kept under lock and key and managed by one designated employee. Maximum withdrawal is typically set at a small amount —$50, for example—and all transactions are to be recorded and accompanied by a receipt. Petty cash should never be used to cover employee payroll.
