What Are the Advantages of Using the Imprest System?
The advantages of using the Imprest system are versatility, accountability, practicality, limitation of theft, ease of use and limitation of expenditure. The system is a form of managing petty cash in a business.
Using Imprest, the petty cash of a company is kept at a constant rate. Each time money is withdrawn, a voucher must be placed in the cash box to account for any missing funds. This can be handled by a junior member of the staff, making it simpler for management. The amount of cash on hand can change depending on the needs of the business. Checks do not need to be written for small purchases and theft is easily tracked by a simple count at the end of the day or at the end of each shift.