Petty Cash
Also called: cash in hand, imprest cash
What is Petty Cash?
Petty cash is a small float of physical cash kept for minor expenses — auto fare, courier charges, a last-minute purchase. It is usually run on an imprest system, topped back up to a fixed amount.
Why Petty Cash matters
Petty cash is small enough to be ignored and leaky enough to matter. Unvouchered spending accumulates quietly and is the hardest category to reconstruct at year end.
Petty Cash formula
Cash on hand + Vouchers held = Imprest float
Any shortfall is an unrecorded payment.
How Petty Cash works in practice
Fix the float, require a voucher for every payment, and reimburse only against vouchers so the box always totals cash plus vouchers. Count it weekly, by someone who does not hold the key.
Frequently asked questions
About two weeks of small expenses — enough to avoid constant top-ups, small enough to limit exposure.