The main benefits or advantages of petty cash book can be pointed out as follows:
1. Relief To Cashier
Petty cash book relieves the main cashier because it is prepared by the petty cashier. Main cashier can focus on other major financial transactions of the business.
2. Systematic Recording
It records all the minor expenses of the business properly and systematically and provides information quickly when needed.
3. Assists Controlling
It helps to control tiny expenses of the organization by making comparison between the petty expenses of two periods.
Petty cash book saves the valuable time of main cashier because it is maintained by the petty cashier. Because of scientific recording, it is labor saving also.
5. Minimization Of Errors
Petty cash book helps to minimize errors and frauds because it is checked regularly and reported timely.
6. Preparation Of Main Cash Book
It facilitates preparation of main cash book quickly and easily by minimizing the number of small cash transactions.
7. Division Of Labor
Petty cash book promotes division of labor in the business organization
