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Definition of 'Imprest'

An imprest is a sum of money advanced to an employee or other person for a specific purpose, the balance of which is returned once the purpose has been fulfilled. Imprests are often used to cover expenses that are not reimbursed by the employer, such as travel or entertainment costs.

There are two main types of imprests: cash imprests and petty cash imprests. A cash imprest is a sum of money that is given to an employee in the form of cash. A petty cash imprest is a sum of money that is given to an employee in the form of checks or petty cash vouchers.

The main advantage of using an imprest is that it provides a way to control spending. When an employee is given an imprest, they are only able to spend the money that has been allocated to them. This helps to prevent overspending and fraud.

There are also some disadvantages to using an imprest. One disadvantage is that it can be difficult to track the use of imprest funds. If an employee does not keep accurate records of their spending, it can be difficult to determine how the money was used. Another disadvantage is that imprests can be a security risk. If an employee loses the money that has been advanced to them, the employer may be liable for the loss.

Overall, imprests can be a useful tool for businesses to control spending. However, it is important to weigh the advantages and disadvantages of using an imprest before deciding whether or not to implement one.

Here are some additional details about imprests:

* Imprests are typically used for small, recurring expenses.
* The amount of money in an imprest is usually determined by the employer.
* Imprests can be replenished as needed.
* Imprests are often used by businesses, government agencies, and non-profit organizations.

If you are considering using an imprest, it is important to speak to your accountant or financial advisor to get advice on the best way to implement one.

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