bisnisrakyat.id - Every business, from small to large, is required by law to pay attention to financial management for the progress of its business. In good financial management, companies can see information about their company objectively. Increased income, the amount of expenses that must be incurred, debt position and so on can be seen in the financial report. In conducting business transactions, companies do not always spend large amounts of money to pay for something. However, without realizing it, companies can also spend money in small amounts, but in large quantities.

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Petty cash is a fund used to finance company operations or matters related to activities carried out by the company. Petty cash is a practical thing because every small need such as buying meeting supplies, buying stationery and so on does not always need to ask for financial funds. Because generally, companies will often spend relatively small funds for various interests.

Purpose of Petty Cash
1. Handle the purchase of office equipment and supplies.
2. Handle sudden small expenses.
3. Lighten the burden on employees because it is practical and fast.

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Petty Cash Management Methods
1. Fixed Method
The fixed method is a petty cash recording system where the petty cash account amount must always remain the same. Every cash expenditure, the petty cash holder does not immediately record it in the journal book, but only collects evidence of the transaction. The filling of the petty cash fund is done the same as the amount that has been spent so that the amount of the petty cash fund returns to its original state.
Steps for Using Petty Cash Using the Fixed Method
- Formation of a petty cash fund where the cash holder will later be given a certain amount of cash which will later be used to pay for expenses that are estimated to be able to meet needs within a certain time.
- The petty cash fund is used to pay for expenditure transactions.
- After the petty cash fund runs out/almost runs out, the cashier re-forms the petty cash fund, filling it with the nominal amount of the expenditure that occurred

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2. Variable Method
The variable method is a petty cash recording system where the amount will always change according to needs. This method does not determine the amount of petty cash from the beginning, but according to the needs that are currently needed. This variable method has the following characteristics:

1. The formation and replenishment of the petty cash fund are recorded in the debit account.

2. Evidence of petty cash expenditures is recorded in the petty cash journal by debiting the accounts related to the use of the credit account.
3. The amount of petty cash funds provided fluctuates according to the development of the activities of the sections using the funds.