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tembeaqbo
Level 1

Kindly help with ways to post transactions where cash is withdrawn from bank, advanced to staff to implement activities then the staff liquidates/accounts with receipts

 
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Best answer March 31, 2020

Best Answers
RaymondJayO
Moderator

Kindly help with ways to post transactions where cash is withdrawn from bank, advanced to staff to implement activities then the staff liquidates/accounts with receipts

Yes, I'm here to share with you the ways to complete your three tasks, @tembeaqbo.

 

First, let's either create a check or an expense to record the cash withdrawal from the bank. Just make sure to choose the appropriate Bank Account. 

 

Second, let's create a journal entry to record the advanced cash to the staff. Before that, you'll have to set up a liability account for the amount you owe to the staff. Also, add an expense account for the activities implemented by the staff. I'd suggest consulting your accountant to determine the appropriate types for these two accounts. They can also help you assist when creating the journal entry. Please make sure to switch from a Business view to an Accountant view. Once verified, proceed with the steps below. 

 

To create a journal entry: 

  1. Go to the + New button from the left menu. 
  2. Select Journal entry under Other
  3. Set the Journal date
  4. On the first line, choose the liability account you've created. 
  5. In the Credits column, enter the amount you owe to your staff.
  6. Choose the name of the staff in the Name drop-down. 
  7. On the second line, select the expense account. 
  8. Under Credits, enter the same amount. 
  9. Hit Save.

 

The screenshot below shows you the last seven steps. 

EnterAJournalEntry.PNG

 

Third, you can pay your staff through a check or an expense when he/she liquidates the activities with receipts. I'll guide you how.

  1. Go to the + New button from the left menu. 
  2. Select Check or Expense.
  3. Locate the name of your staff in the Payee drop-down. 
  4. Go to the Category details section. 
  5. Choose the liability account in the Category drop-down. 
  6. Enter the amount and necessary information. 
  7. Click Save and close

 

I've attached a screenshot below to show you the last five steps. 

PayAStaff.PNG

 

Once done, let's run and customize the Transaction Detail by Account report. This lets you review your staff reimbursements in the program. For more information, see the How to check your employee reimbursements section through this article: Reimburse An Employee

 

Moreover, it's a great business practice to avoid mixing business and personal expenses. But there may be times where it's necessary. With this, I recommend visiting this article: Mixing Business and Personal Funds Overview. Just click the two links under the Mixing business and personal funds - owners or partners section. 

 

I'm always here to help if you need anything else. Have a great rest of your day, @tembeaqbo.

View solution in original post

1 Comment 1
RaymondJayO
Moderator

Kindly help with ways to post transactions where cash is withdrawn from bank, advanced to staff to implement activities then the staff liquidates/accounts with receipts

Yes, I'm here to share with you the ways to complete your three tasks, @tembeaqbo.

 

First, let's either create a check or an expense to record the cash withdrawal from the bank. Just make sure to choose the appropriate Bank Account. 

 

Second, let's create a journal entry to record the advanced cash to the staff. Before that, you'll have to set up a liability account for the amount you owe to the staff. Also, add an expense account for the activities implemented by the staff. I'd suggest consulting your accountant to determine the appropriate types for these two accounts. They can also help you assist when creating the journal entry. Please make sure to switch from a Business view to an Accountant view. Once verified, proceed with the steps below. 

 

To create a journal entry: 

  1. Go to the + New button from the left menu. 
  2. Select Journal entry under Other
  3. Set the Journal date
  4. On the first line, choose the liability account you've created. 
  5. In the Credits column, enter the amount you owe to your staff.
  6. Choose the name of the staff in the Name drop-down. 
  7. On the second line, select the expense account. 
  8. Under Credits, enter the same amount. 
  9. Hit Save.

 

The screenshot below shows you the last seven steps. 

EnterAJournalEntry.PNG

 

Third, you can pay your staff through a check or an expense when he/she liquidates the activities with receipts. I'll guide you how.

  1. Go to the + New button from the left menu. 
  2. Select Check or Expense.
  3. Locate the name of your staff in the Payee drop-down. 
  4. Go to the Category details section. 
  5. Choose the liability account in the Category drop-down. 
  6. Enter the amount and necessary information. 
  7. Click Save and close

 

I've attached a screenshot below to show you the last five steps. 

PayAStaff.PNG

 

Once done, let's run and customize the Transaction Detail by Account report. This lets you review your staff reimbursements in the program. For more information, see the How to check your employee reimbursements section through this article: Reimburse An Employee

 

Moreover, it's a great business practice to avoid mixing business and personal expenses. But there may be times where it's necessary. With this, I recommend visiting this article: Mixing Business and Personal Funds Overview. Just click the two links under the Mixing business and personal funds - owners or partners section. 

 

I'm always here to help if you need anything else. Have a great rest of your day, @tembeaqbo.

View solution in original post

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