Explain how a company can control small cash payments that are made in cash rather than by check

Using a petty cash fund can control small cash payments. The amount of cash to which employees have direct access is small. A designated custodian should control the use of the petty cash and the documentation that is necessary for any disbursements of petty cash. The system established for petty cash provides a convenient and sound procedure for identifying the assets and expenses that must be recorded when small cash payments are made.