Imprest

Imprest is a form of small-cash advance used in accounting to maintain a fixed amount of cash available for minor expenses. An imprest fund is typically a petty cash fund established by an organization; a fixed sum is deposited, and employees may withdraw small amounts with receipts. The fund is replenished by submitting vouchers; the replenishment restores the fund to its original fixed amount. Because the total cash remaining plus receipts equals the initial amount, the system provides straightforward control and traceability.

Operation is typically as follows: a supervisor approves requests, cash is advanced, and expenses are documented with receipts or vouchers. At period end or when the fund is low, the organization replenishes the fund by providing an amount equal to the total expenditures, so the fund again contains the original fixed sum. This makes it easy to track spending and detect discrepancies.

Applications include government, corporate, and institutional settings for petty cash, travel advances, field expenses, and routine office disbursements. The imprest principle underlies two common forms: petty cash imprest for everyday expenses and department- or program-specific imprest accounts for controlled disbursements.

Advantages of the imprest system include simplified disbursement of small amounts, tight spending control, and straightforward reconciliation. Disadvantages include potential for misstatement if receipts are lost or falsified, ongoing replenishment and supervision requirements, and the need for clear internal controls and audits.

History and terminology: the term imprest arises from English accounting usage, with roots in the notion of entrusting funds for a specified purpose. In modern practice, many organizations adapt the concept to electronic or hybrid cash management approaches.