Pikkurahatilit

Pikkurahatilit is a Finnish term used to refer to petty cash accounts in accounting. The name combines pikkuraha, meaning small money or petty cash, with tilit, meaning accounts. In practice, pikkurahatilit denote a small cash fund kept within an organization to cover everyday, low-value expenditures without initiating formal payment procedures.

A typical pikkurahatili operates as an imprest fund or petty cash float. A fixed amount is advanced to a custodian who disburses cash for eligible expenses such as office supplies, postage, or minor reimbursements. Each disbursement is supported by a receipt or voucher, and the fund is periodically replenished from the general ledger to restore the original float. Reconciliation is performed to ensure that the sum of cash on hand plus recorded expenditures equals the established float.

Controls and governance are essential to reduce the risk of misuse. Common practices include limiting the maximum single payment, requiring dual approval for unusual or high-value expenditures, maintaining detailed receipts, and conducting periodic internal or external audits. Organizations may also publish a pikkurahatili policy outlining eligible costs, documentation standards, and replenishment procedures.

Historically common in Finnish businesses, public administrations, and educational institutions, pikkurahatilit remain a practical tool for managing small, frequent expenses. With advances in digital accounting systems, many organizations combine traditional petty cash processes with electronic expense reimbursement and card-based solutions, enhancing traceability and efficiency while preserving the logic of petty cash management. See also petty cash, imprest system, and expense reimbursement.