Advantages of analytical petty cash book
Petty cash is a comprehensible and common method of paying for business operating cost. When petty cash is easy to get to employees, it is a suitable way to pay for little purchases
The advantages of analytical petty cash book are given below:
Simple Method: It is a easy method of recording petty expenses. The preservation of petty cash book does not need particular knowledge of accounting.
Economy of Time: It requires smaller time in recording and also saves the time of the chief cashier.
Lesser chances of mistakes: The petty cash book is checked by the chief cashier at the end of the particular period. This procedure minimizes the probability of mistakes.
Frauds can be minimized: Recording transactions on the basis of vouchers and checking of cash book by the main cashier minimizes the chances of fraud.
Petty cash is mostly an out-of-date and incompetent method, and one that businesses should think again using. While suitable for little purchases, petty cash is not a feasible way out to huge expenses. The larger the company, the harder it is to pathway outgoing petty cash, changes, and receipts. This makes the whole petty cash system vulnerable to mistreatment or absolute fraud.