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Accounting
Petty Cash
A small amount of cash kept in the office for tiny everyday expenses that are too small to write a check for.
Petty cash is set up with a fixed amount. Every time someone spends from it, they put a receipt in the box. When the cash gets low, you replenish it from the main checking account and record all the expenses at once.It's like the jar of quarters your parents keep in the kitchen for ice cream truck money or emergency snacks.
Real world: A coffee shop keeps $100 in petty cash for buying milk, stamps, or a quick run to the hardware store instead of using the main business account.
💡 Petty cash keeps small purchases simple and fast — just make sure every dollar is backed by a receipt so nothing disappears.