Petty Cash
So what is petty cash, really?
Petty cash is a small pool of physical cash that a business keeps on hand to cover minor, everyday expenses. Think: buying snacks for a meeting, grabbing a package of printer paper, or buying postage for mailing a last-minute client gift.
It’s meant to be quick and easy - no need to run payments through your accounting system or wait for a reimbursement. But just because it’s “petty” doesn’t mean it doesn’t matter. Businesses should keep a log of every withdrawal and receipt, and regularly “top off” the fund to its starting balance.
If you’re not tracking it, petty cash becomes a black hole. It’s not about paranoia — it’s about staying in control, even when it’s just $20 at a time.
Nobody cares about petty cash… until it’s gone.
How people actually use it in a sentence...
“Marcus ‘borrowed’ from the petty cash drawer again. Which is weird, because no one remembers what it was that he bought.”
Did you know...
Some companies have “petty cash policies” so detailed they include rules about stapling receipts, approved pen colors, and snack spending limits.
In a 2022 survey, over 40% of U.S. startups admitted they had no formal petty cash tracking system - just “vibes” and a shoebox full of receipts.
Want the textbook definition? Check out Petty Cash on Investopedia.com