The main advantages of petty cash book are as stated below:
- Reduction in numbers of transactions: Many expenses of small nature are recorded in petty cash book. The number of transactions is reduced in the cash.
- Reduction of errors: As head cashier checks the accounts of previous month and gives advance for the coming month, thus, errors if any are reduced.
- Savings of time and labor: As the petty expenses are recorded by petty cashier hence the labor and time of the head cashier is saved.
- Check on expenses: From time to time the head cashier checks the account of petty cashier at any time so that the chances of misuse are minimized.
- Control on petty expenses: While checking the total of such expenses, the head cashier can put objections on undesirable expenses. Thus, expenses are controlled.
- Facility in posting: Since only the total of various small expenses are recorded in cash book. Hence direct ledger posting becomes easy.
- Saving of space: Only the total of all small expenses are recorded in cash book and also in ledger account. Thus, lot of space is saved.