What is imperest account?

An imprest account is a type of financial account used to manage and control petty cash expenses within an organization. It operates on a fixed fund system, where a set amount of money is allocated to the account, and expenditures are made from it as needed. When the fund runs low, it is replenished to the original amount, usually by submitting receipts for the expenses incurred. This system helps maintain accurate records and ensures that spending is monitored effectively.