what is petty cash? In accounting, petty cash is a type of fund, which is so established to address minor and incidental business expenses that do not need formal payment procedures. Businesses would save time and effort by using petty cash instead of going through the accounts payable processing all their minor purchases. As an example, it could be applied to purchasing postage, little office supplies, or snacks to the employees. The petty cashier is also in charge of giving out cash, maintaining vouchers and balances. This system provides the ease of the day-to-day running of the system and at the same time does not compromise on financial control. Even though it is small, petty cash must be managed well so as to ensure that business records are accurate.