Handling an employee's personal expense on a business account requires careful handling and documentation in QuickBooks Online (QBO), TimCA.
It's important to note that creating an invoice or categorizing the transaction as a receivable is not advisable, as this would incorrectly report it as part of your income. Let me share the steps on how to record the charge and reimbursement in QBO.
First, record the personal expense from the business account. This is to make sure that it's easier for you to reconcile the transactions once they show up in the bank statement. Here's how:
- Click the + New and select Expense.
- Choose a name in the drop-down list for Payee.
- Select the credit card account that was used in the transaction.
- Proceed to the Category details section, then choose a category for this charge. It's crucial to consult your accountant regarding the correct account to use for this transaction. This ensures that it will be correctly reflected in your financial reports.
- Enter any other details and the amount of the transaction.
- Click Save and close.
Next, record the employee's reimbursement as a deposit. Let me show you how:
- Go back to the + New button and select Bank Deposit.
- Select an account to add the reimbursement to, then choose a date.
- Go to the Add funds to this deposit section. Then, select the employee who made the personal expense.
- Select an account In the Received From field. I also suggest checking with your accountant if you need to create a different account for the reimbursement.
- Choose a payment method and enter the reimbursement amount.
- Click Save and close.
Just in case you find yourself needing extra support when working in QBO and doing general bookkeeping tasks, our QuickBooks Live Expert Assisted team is ready to assist you at any time.
Don't hesitate to revisit this forum if you have any further questions about recording charges, reimbursements, or general inquiries when using QBO. We're committed to providing you with the help you need to navigate QuickBooks effectively.
