Petty Cash Policy

The following sample outlines a set of policies and procedures for the petty cash disbursement and reimbursement process. These procedures apply to all employees of a company.

According to this policy, a petty cash fund should be utilized for minor business expenses. Petty cash funds allow cash to be made available to departments and activities to facilitate cash payment for minor expenses while maintaining proper control. This sample states that a centralized petty cash fund should be maintained by the accounts payable department, and the fund should be set up with a designated amount for authorized out-of-pocket expenses and advances for minor business expenses.