Petty cash describes small transactions of a business. The term “petty” is used because it is small (petite) amounts of cash or cash-like transactions. “Petty” isn’t so small anymore, so think of it as small amounts that you might not think about tracking. We use the term “petty cash” to include a variety of small business transactions.
- Buying food for the office
- Paying day to day expenses
- Treating employees to celebrate an accomplishment
- Buying a small gift on the way to a business meeting.