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Definition
In cash-flow terms, float is the small amount of ready cash a business keeps on hand for immediate, minor needs — the physical cash in a till or petty-cash tin, or a modest working balance kept liquid for day-to-day payments.
In plain terms
A retailer's till float provides change; an office's petty cash covers small purchases. Float is deliberately kept small and accessible — enough for the everyday, not so much that cash sits idle when it could be working or earning.
Why it matters
Managing float is a minor but real part of cash control — too little causes friction, too much wastes liquidity. See petty cash.
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