Most offices have reduced or removed petty cash in favour of a company card with per-transaction limits, because the reconciliation effort rarely justifies the convenience.
If petty cash is retained, keep the float small, reconcile it on a fixed schedule and have a second person check it. The control effort should be proportionate to the amount held.
Common questions
What does Petty Cash mean in simple terms?+
Petty cash is a small float of money held on site for minor purchases that are impractical to put through a purchase order, reconciled against receipts.
How does Petty Cash work in practice?+
Most offices have reduced or removed petty cash in favour of a company card with per-transaction limits, because the reconciliation effort rarely justifies the convenience.
What are the best practices for Petty Cash?+
If petty cash is retained, keep the float small, reconcile it on a fixed schedule and have a second person check it. The control effort should be proportionate to the amount held.