Imprest System
Financial Dictionary — Cash Management & Controls
Definition
A system for controlling petty cash where a fixed amount is maintained and replenished periodically.
Detailed Explanation
The Imprest System is a petty cash control method where the fund is maintained at a fixed amount; replenishment equals documented expenses, making the remaining cash plus vouchers always match the authorized float.
Common Uses
- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.
- Used when setting KPIs, policies, procedures, and improving processes.
Practical Example
- Example: Management applies **Imprest System** when designing policies and monitoring performance against targets.
Why This Term Matters
- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.