Petty cash refers to the tiny quantities of money that departments or offices keep on hand for paying for miscellaneous costs.
The imprest system is the foundation of petty cash and petty cash management systems. You put some spare change into the petty cash fund. The money can be used for miscellaneous costs at the various outposts. When the balance in the account gets low, you can put more money in there.
The discipline of petty cash management aids firms in keeping these assets secure and accessible when needed. That way, all of the small-dollar transactions can be recorded and accounted for. Items purchased using petty cash may seem insignificant at first, but they often mount up over time.
