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| Resources for Entrepreneurs | Entrepreneur's Glossary | ||||
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Petty Cash
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Definition of Petty CashPetty Cash is a small fund of cash that organizations keep on hand for incidental expenditures.
Petty cash is used for things like postage, taxi fares, donuts for client meetings and parking fees. One alternative to petty cash is to give employees a company credit card. Another is to have employees use their own monies and then seek reimbursement later. However, these alternatives come administrative overhead and other challenges, so having a petty cash fund is a good idea. Always keep petty cash in a secure and locked cabinet. Stolen petty cash is a very common issue for companies, as outside thieves and employees who steal view it as an easy target. Every use of petty cash should be carefully documented and substantiated. It's also smart to periodically audit petty cash usage to make sure nobody is embezzling petty cash in a systematic fashion. If you are an ambitious entrepreneur or an aspiring executive looking to get involved with a startup, please take the time to learn more about Gaebler Ventures.
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