imprest system
Imprest System is a way of managing small office cash where a fixed float is topped up only after every kobo spent has been accounted for with receipts.
In plain English
"Where is the money for diesel and recharge cards?" the office manager asked. "I gave you ₦20,000 last week." The admin officer laughed and pulled out a small folder. "Ah, madam, I have all the receipts here. Diesel ₦12,000, recharge cards ₦3,000, courier for that Lagos parcel ₦2,500. I have ₦2,500 balance, let me return it or should I use it for next week?"
That little exchange is the whole imprest system in action. A company or department is given a fixed amount of cash, called the float, to cover small day to day expenses like fuel, stationery, tea and biscuits for guests, or okada fares for errands. Nobody just spends anyhow and explains later from memory. Every purchase must come with a receipt or voucher, kept safely, so the float can be reconciled before it is topped up again.
The beauty of it is control without stress. A Lagos law firm might keep ₦50,000 as office imprest with the front desk officer. She spends, she keeps receipts, and when the float runs low, she submits the receipts to accounts, gets refunded exactly what was spent, and the float returns to ₦50,000. It never grows, it never shrinks permanently, it just gets replenished.
In the United Kingdom, a school might run a petty cash imprest of £200 for the office manager to buy stamps, milk, or emergency stationery. The bursar checks the receipts monthly before topping it back up to £200. Same logic, different currency, same discipline.
For someone in the diaspora sending money home to run a small family business in Nigeria, setting up an imprest style float for the shop attendant is a smart move. Instead of wiring money every time something small is needed, you fund a fixed float, ask for receipts, and top up only what was genuinely spent. It keeps trust intact and keeps accounts clean.
A branch office is given ₦30,000 as its imprest float for the month. By the third week, receipts show ₦18,000 spent on airtime, stationery and transport. Accounts refunds exactly ₦18,000, bringing the float back to ₦30,000, ready for the next round of small expenses.
Questions people ask
Who usually keeps the imprest float in a Nigerian office?
It is often the front desk officer, admin staff, or a designated cashier. The key is that one person is responsible, so accountability is clear and receipts do not get scattered between many hands.
What happens if someone cannot produce a receipt for money spent?
That amount is usually queried and may not be refunded, so the float stays short until it is explained or the person makes it up personally. This is exactly why the system encourages careful record keeping.
Is the imprest system only for cash, or can it work with a bank account?
It can work either way. Some offices keep physical cash in a box while others use a dedicated small bank account or card that gets topped up to a fixed limit after expenses are reviewed and approved.
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