Do you need petty cash in your business? In many businesses petty cash represents a financial advantage, so we want to share with you some information about why you should have petty cash and how you can have a better control of it.
At QuAdrans law and finance we guide you to make the best accounting decisions for your business.
What is petty cash?
Petty cash is a small amount of cash that a company has at its disposal to cover moderate expenses that are unforeseen.
Every business has expected expenses, so daily budgets are created to make payments. However, what about those expenses that come up suddenly?
Petty cash can be used for emergencies, and it’s not recommended to take money in an uncontrolled and undocumented way.
We invite you to read our blog post: Tips for the proper management of petty cash. We believe it may be a topic of interest to you.
What you shouldn’t do with petty cash?
Many people who have petty cash don’t manage to have a good control of it, this can generate losses for a company.
What you should do with your petty cash is:
- Take money in a controlled way and document every use of it.
- Assign a responsible person.
- Establish a spending policy.
- Maintain expenses reports.
- Ask for receipts of expenses.
- Do not leave petty cash empty.
At QuAdrans law and finance we have lawyers, public accountants and IT experts who are trained to offer you a personal or corporate service. Discover our services.
We are located in the city of Playa del Carmen, Quintana Roo, write to us to receive more information about our services.
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Do you need petty cash?
