Imprest and Cash Management

Pretoria: 30 September to 11 October 2024

Overview

The Imprest system is a form of financial accounting system. The most common Imprest system is the petty cash system. The base characteristic of an Imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, will be replenished. This replenishment will come from another account source, e.g., petty cash will be replenished by cashing a cheque drawn on a bank account. Cash is any medium of exchange, which is immediately negotiable. It must be free of restriction for any business purpose. Cash has to meet the prime requirements of general acceptability and availability for instant use in purchasing and payment of debt. Acceptability to a bank for deposit is a common test applied to cash items.

Cash management is the monitoring and maintaining of cash flow to ensure that a business has enough funds to function. In order for companies to function autonomously, they need to establish a system that maximizes liquid assets while minimizing outgoing operational and logistical costs. In other words, cash management helps companies ensure that their cash flow covers their financial obligations. This course will cover all aspects of cash management with particular emphasis on working capital management. The course will deepen delegates’ understanding of different sources and applications of funds and their utilization. This includes Capital Investments appraisal, understanding various components of Working Capital, and advantages of having an efficient Enterprise Resource Planning system. Thus, the course will lead to a better understanding of the ways to optimize free cash flow, maintain a fine balance of working capital, and investment of surplus funds to increase shareholders’ value.