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:
- Click + New.
- Choose Check or Expense.
- In the Payee dropdown, select your employee’s name.
- 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.
- Fill in the necessary info.
- 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.
