What is the primary use of a petty cash fund?

The primary use of a petty cash fund is to facilitate small payments that are often impractical to pay through the regular accounts payable process. Petty cash allows businesses to handle minor expenses conveniently without the need for formal purchase orders or checks. This can include items like office supplies, minor repairs, or other miscellaneous expenses that arise in day-to-day operations.

Using a petty cash fund streamlines the process of managing these costs, ensuring that employees can obtain necessary items or services quickly and efficiently. This enhances the productivity of the organization by allowing for immediate access to funds for small transactions. Additionally, maintaining a petty cash fund helps in keeping detailed records of these minor expenses for better financial tracking and management.