Petty Cash Fund

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Petty Cash Fund

A budgeted amount of money a company periodically replenishes to pay for minor purchases. A company may withdraw the petty cash fund from the bank every two to four weeks and keeps it in cash. This cash may be used, for example, to pay for lunch for employees once a week. Because the petty cash fund is a budgeted item, it helps reduce the likelihood that the company will overspend.
References in periodicals archive ?
If many departments are holding on to petty cash funds, the aggregate amount can be large enough to warrant more sophisticated handling.
There is no provision in petty cash funds for buying food.
Authorizations for expenditure of petty cash funds (Are dual controls in effect?
Demand deposits (checking, savings and money market accounts), petty cash funds and such negotiable items as travelers' checks, cashiers checks, bank drafts and money orders are also cash.
Whether it's handling invoices without POs, invoice discrepancies, unclaimed checks, wire transfers, p-card disputes, master vendor file issues, petty cash funds, or 1099 forms, this guide can help you respond and build a coherent set of policies.