Petty cash refers to small amounts of cash kept aside for operational expenses or logistics. It can be used to pay for small purchases that require cash, such as food for the office lunch, coffee supplies, or parking.
Every purchase using petty cash must be recorded in the same way as other business income and expenses. Entering petty cash transactions in the system help track these expenses, so they can be used to offset income for business tax purposes.
Recording petty cash facilitates adding the receipt and expense details at any point of time, even for previous dates. Details of any number of days can be collated and generated as a single report.
Learn how to record petty cash transactions