petty cash
Definition
Noun: A small amount of cash kept on hand by a business or organization to pay for minor, incidental, or unexpected expenses that are too small to justify writing a check or making an electronic payment.
Usage
This term is used primarily in business, office, and organizational contexts. It refers to a physical fund of money, often kept in a locked box or drawer, managed by a custodian. Expenses paid from petty cash are typically documented with receipts.
Examples
- The office manager used the petty cash to buy more coffee for the break room.
- Please save the receipt for the postage stamps so we can reconcile the petty cash fund.
- For small stationery purchases, you can get reimbursed from the petty cash.
Advanced Usage
- "Petty cash fund": A more formal term emphasizing it is a designated financial resource.
- The auditor reviewed the records of the petty cash fund.
- "Petty cash custodian": The person responsible for safeguarding and managing the petty cash.
- As the petty cash custodian, she ensures all disbursements are properly recorded.
Variants and Related Words
- Cash float (n): A similar concept, often used interchangeably, referring to a small amount of cash used to provide change at the beginning of a business day.
- Imprest system (n): A common accounting method for managing petty cash, where the fund is replenished to a fixed amount after expenses are documented.
Synonyms
- Slush fund (Note: This can have a negative connotation of unregulated money, while "petty cash" is a standard, legitimate accounting term.)
- Cash on hand (general term)
- Minor expense fund
Related Phrases
- "To tap into petty cash": To use money from the petty cash fund.
- We can tap into petty cash to pay for the courier.
- "To reconcile petty cash": To verify that the physical cash on hand plus the total of the receipts equals the original fund amount.
- It's important to reconcile petty cash at the end of each month.
Noun
-
a small fund of cash that a firm keeps for the payment of incidental expenses
