Cash at hand, also known as “petty cash,” refers to the physical currency that a business keeps on hand for small purchases or unexpected expenses.
It is typically a small amount of cash that is stored in a safe or petty cash box and is used to pay for items such as office supplies, postage, and other small expenses that do not require a formal purchase order or approval process.
Simple Sales And Expenses Recording Tips
Cash at hand is important for businesses to have readily available to ensure that they can handle small expenses quickly and efficiently. This can help to streamline operations and reduce the time and resources required to process small transactions.
Also, cash at hand can be used for emergencies, such as when a supplier requires payment on short notice or when unexpected expenses arise. Having a small amount of cash on hand can help to ensure that the business can cover these expenses without having to dip into other funds or take on additional debt.
