Petty means of little importance, possibly derived from petit meaning small. So I would guess petty cash is small inconsequential cash amounts that aren't worth fussing over, therefore shown in the accounts as a whole rather than individually. You can and should of course keep a petty cash record to make sure no-one is taking money from the company, no matter how small and inconsequential.
-- Edited by Rhianrach on Sunday 15th of April 2012 07:03:25 PM
Its an office float intended for minor purchases and expenses that require cash. For example stamps.
Generally Petty Cash systems use the Imprest float system.
To the best of my knowledge there has always been a small cash float held in offices although this will generally be based on no more than £150 which generally means a bit of cash and a lot of receipts for small amounts in a small tin or large jar rather than an actual secure money box which they will invariably have but there will have been two keys with it and one is lost and the others locked inside the tin.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I think if it's someone working alone they will generally do what you're talking about but any bigger organisation I've worked in has a petty cash system.
"What I have come across more and more is that most employees will pay for a 'small' item and then claim it as an expense."
When they claim the cash, it probably comes out of the petty cash container rather than going through the whole process of treating each employee as a creditor, with their own accounts and all.
Plus every secretary or office administratior I've met always have a tin or something for petty cash. So I don't see that it's dying out.
[Edit: Still making silly mistakes.]
-- Edited by Rob-f58049 on Monday 16th of April 2012 08:43:06 AM
, it provides bacon butties.
