Managing Petty Cash in a Small Business

Petty cash is useful for small business expenses, but it can easily become a source of missing money if not controlled.

Set a petty cash limit

Decide how much petty cash the business should hold. Avoid allowing uncontrolled withdrawals from the main till.

Record every petty cash expense

Even small items should be recorded with date, amount and reason. Small spending adds up over time.

Keep receipts where possible

Receipts help confirm that the money was used for the business and not personal spending.

Reconcile petty cash regularly

Check remaining petty cash plus recorded expenses against the original amount issued.

Good petty cash control gives a more accurate view of real expenses and profit.