The problem is employees sometimes buy stuff for the business, for which they need to be reimbursed. I need to log these as expenses in the system - but there is no way to assign them to Liability account in Expenses form. What is QBO best practice for assigning expenses that were paid for by someone else that need to re-imbursed to them sometime later.
A work around my accountant said was to create a "fake" Credit Card account in Chart of Accounts and assign the expenses to that, but it doesn't seem like a good solution as on the Balance Sheet these are all classified under Credit Card which doesn't seem right and might confuse an auditor?
I appreciate the detailed information you've shared, @dtl.
Since we're unable to assign a liability account for expense transactions, you can consider creating a journal entry. This way, you can assign a liability account along with the expense account for your employee's reimbursement. Let me guide you through the steps.