A petty cash management system helps companies ensure that those funds are used appropriately. It serves as an internal control to safeguard that asset. Without a system for handling petty cash, a company can be vulnerable to theft. Managing your petty cash system ensures oversight and makes it easier to enter those business expenses in your company’s bookkeeping system. Even though the amounts passing through the petty cash fund are small, over time these small expenses can add up. Most companies don’t want to lose those deductions on their financial statements, or lose visibility into where resources are being spent.