Imprest

Imprest – An imprest is a fixed fund or financial reserve maintained to cover routine, small, or recurring expenses. Typically managed by a cashier or petty cash custodian, the fund is periodically replenished to restore it to a predetermined balance. The imprest system ensures smooth day-to-day operations without frequent approvals for minor payments. Additionally, the term "imprest" can also refer to a loan or advance provided for a specific purpose, which is expected to be repaid or adjusted after use.

Example: A company maintains an imprest of ₹10,000 for office supplies. As expenses occur, the cashier spends from the fund, and at month-end, the amount spent is reimbursed to restore the fund to ₹10,000