An imprest account is used on the following basis:
- A set bank account balance (set depending on the spending requirements of the location / branch and on the regularity of the reimbursement (eg. weekly, monthly));
- Deposits are made to the organisations general account and not the imprest account;
- A reconciliation of the imprest account is conducted when a reimbursement is required;
- Signatories to the imprest account are usually people located at the location / branch for ease of use of the account.
The use of an imprest account reduces the risk of fraud as it reduces the possible spending people at the location / branch can undertake.
The imprest account system allows locations / branches to have some autonomy while still being restricted in the amount they can spend and still providing regular support for the expenditure they undertake.