A petty cash book is a manual or digital record of small, routine cash transactions in a business.
It tracks payments made for low-value expenses like office supplies, courier charges, or petty meals.
A petty cash book is a manual or digital record of small, routine cash transactions in a business. It tracks payments made for low-value expenses like office supplies, courier charges, or petty meals.
Purchasing pens, paper clips, and staplers for the office.
Paying for courier charges for urgent document delivery.
Reimbursing employees for small, out-of-pocket expenses.
Date of transaction
Description of expense
Payment amount
Running balance (beginning balance + payments - receipts)
1. Imprest System: A fixed amount is periodically replenished to maintain a constant balance. This simplifies reconciliation and reduces the risk of fraud.
2. Ordinary System: The petty cash fund is replenished only when it's depleted. This requires more frequent monitoring and accounting work.
Simplifies handling small expenses.
Reduces reliance on corporate credit cards or checks.
Improves expense tracking and accountability.