Record Cash Expenses Quickbooks How To Record A

In QuickBooks Online, you can use the other current asset account to keep track of the initial check that is written to the employee.

You can also record the expenses once the employee submits an expense report detailing how they spent the cash for travel expenses andor reduce their paychecks for the balance.

Record Cash Expenses Quickbooks How To Record A

Keep reading to learn how to record a non-payroll related employee cash advance in QuickBooks Online.

In my example below, I am specifically showing how to record a non-payroll employee cash advance.

Create your Employee as a Vendor Click the Expenses tab at the left navigation bar, then select Vendors Click the New vendor green button to create your employee as a vendor if they dont already exist in your vendor center.

Create an Employee Cash Advance Account A Clearing Bank Type Account Click on the Accounting tab at the left navigation bar, then select the Chart of Accounts Click the New green button to create a new account.

Record the Expense to Reduce The Employee Cash Advance Account Balance For this process, you will need a copy of the expense report from the employee and need to use the petty cash or clearing account we created above.

To record the expense transactions, we are going to do a zero sum transaction using an expense form instead of a journal entry.

Create a Zero Sum Expense Click the Quick Create () icon, select Expense or Check under the Vendors column Enter the same vendors name (aka your employee) from the prior step Payment account Petty cash account or Clearing account Payment date Expense report submission date Payment method Cash Reference no Employees abbreviated name and expense report submission date (ex.

JD20190602) Location Label Select from the dropdown option your location name Category expense account for each transaction listed on the employees expense report Description purpose of the transaction Enter an amount, customerproject if applicable, and a class Repeat all of the above for any addition expenses from the expense report In the final line, do the following: Category Employee cash advances account Description Reduce employees name cash advance balance for expense purpose Amount Enter the expense report total as a negative amount Select a class Repeat the last line memo and attach the expense report in the attachment field Verify that you expense form total says 0 Click Save and Close.

You will notice that the total balance for the employee is now zero.

Summary Now you know how to track a non-payroll related employee cash advance in QuickBooks Online using an expense form and how to record an employees expense report transactions.

Questions about using QuickBooks Online run your nonprofit or small business Contact Ufuoma - I am happy to help.

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