In UAE businesses, petty cash must be tracked with a petty cash register and supported by original receipts for every disbursement. For corporate tax purposes, petty cash expenses are deductible if they are wholly and exclusively for business use and are backed by documentation. A common problem: petty cash funds become a shortcut for undocumented personal spending, which creates both a tax deduction risk and an audit flag. Monthly reconciliation and a clear float limit (typically AED 500–2,000 depending on business size) keep petty cash manageable.
See also: Bookkeeping, Audit Trail, Expense Claim
