Petty Cash Float

[Deepak82]

Hello Students,

Can you tell me the considerations in determining the size of petty cash float ?

I will post an ideal answer to this questions shortly.

All the best!

[Davina411]

is it by any chance the size and nature of business?

[Deepak82]

Hello Student,

The amount of petty cash float should be decided by a responsible official, after taking into consideration the following factors:

a) It should cover average expenses during the period
b) It should consider the difficulty of reimbursement, i.e. how fast reimbursement is possible in case of emergencies
c) It should be as low as possible


Hope this helps you! Let me know if you have further queries.

Andrew