Cash Advances to employees and being reimburbursed with expense vouchers

Hey there, @David Stelly. 

Welcome to the Community! Let me provide you with some details about giving cash advances to your employees and be repaid. 

The best option to give your employee an advance is to handwrite them a check, or you can use a money app like Venmo or Zelle. 

To repay an advance through payroll, you'll need to do these two steps:

1. Set up an advance repayment payroll item.
2. Create a paycheck with the repayment payroll item. 

For more details on how the do the actions listed above, review this guide: Set up and repay employee advances. 

In addition, this article may help in the future with reimbursing employees in QBO. 

Feel free to reach back out if you have any further questions. We're always here to help. Take care! 

Thank you.  Our organization issues cash advances to our field personnel to cover unexpected business-related expenses.  The employees submit expense reports to the organization when cash is spent.  The organization then reimburses the employee for the expended amount.  What is the best way to account for this in quickbooks online advanced.

Thank you.  Our organization issues out cash advances to our field personnel to cover unexpected business expenses.  The employees submit expense reports to account for the spent money.  The organization then reimburses the employee for the spent cash.  How can we record this in quickbooks online advanced?

You can manage cash advances and employee reimbursements outside of payroll by creating an Expense or Check transaction in QuickBooks Online, David.

This applies to situations such as cash advances for business expenses or when employees have paid for something out of their pockets. It's important to use the correct accounts for each situation.

To create an Expense or Check, follow the steps below:

1. Click + New.
2. Choose Check or Expense.
3. In the Payee dropdown, select your employee’s name.
4. In the Category dropdown:
   • For the employee Cash Advance intended for business-related expenses, select Other current asset. However, I recommend consulting your accountant for accuracy.
   • For an employee who has personally covered expenses beyond the Cash Advance, select a Liability account.
5. Fill in the necessary info.
6. Once done, click Save and close.

If your employee spends less than the cash advance, you can create a bank deposit to return the remaining amount.

I've shared this article on how to configure your employees with an account so they can submit their expense claim: Set up employee expense management in QuickBooks Online Advanced.

You can also run a payroll report to get a closer look at your business' finances.

Please don't hesitate to leave a comment if you have any additional questions.