Petty cash is a small amount of discretionary funds in the form of cash used for minor expenditures.
[1] The most common way of accounting for petty cash expenditures is to use the imprest system.
[2] Oversight of petty cash[3] is important because of the potential for abuse.
Examples of petty cash controls include a limit on disbursements and monthly audits by someone other than the custodian.
[4] Use of petty cash is sufficiently widespread that vouchers for use in reimbursement are available at any office supply store.