Legal Definitions - petty cash

Definition: Petty cash is a small amount of money kept on hand for minor expenses.

Examples: Petty cash can be used to buy office supplies, pay for postage, or reimburse employees for small expenses like parking fees. For example, if an employee needs to buy a few pens for the office, they can use petty cash instead of submitting a reimbursement request.

This definition explains that petty cash is a small amount of money that is used for incidental expenses. The examples illustrate how petty cash can be used in a business setting to cover small expenses without the need for a formal reimbursement process. This can save time and paperwork for both employees and the accounting department.