Why would a business maintain a petty cash fund?

Maintaining a petty cash fund primarily serves the purpose of facilitating minor expenses without delays. A petty cash fund is a small amount of cash that businesses keep on hand for minor, everyday expenses, such as office supplies, postage, or other small operational costs that need to be paid quickly and do not warrant the time or effort of issuing a check or processing through regular accounting procedures. This fund enables immediate access to cash, thus streamlining the management of small financial transactions while avoiding the bureaucracy that larger expenditures would typically involve.

The other reasons presented do not align with the primary use of a petty cash fund. Managing payroll issues and controlling major financial transactions generally require more formal processes and documentation, which are beyond the scope of petty cash. Additionally, investing in larger projects involves more substantial sums and planning, disenfranchising the utility of petty cash, which is specifically designed for minor operational expenses.