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A
AshL
August 19, 2022
Question

Write off Employee Advance

  • August 19, 2022
  • 1 reply
  • 0 views

Hello.

 

We gave an employee a payroll advance of $250.  We had to terminate the employee and I forgot to deduct the advance from his final pay.  We will not get that $250 back.  It currently shows as a current asset on the balance sheet.  What is the proper way to remove this from our current assets and show that we are not expecting this money back?

 

Thank you!

1 reply

R
Rasa-LilaM
August 19, 2022

It's great to see you here in the Community today, AshL.

 

Let's make a journal entry to remove the employee advance from your current asset account. It only takes a few clicks to create one.

 

Each business has a unique structure, and it's the same with tracking transactions. That said, I recommend consulting with an accountant first to determine which specific account the balance should be transferred to. Reaching out to them will keep your financial records in order.

 

When you have the information handy, let's go ahead and create the journal entry. Here's how:

 

  1. In your company file, navigate to the Company menu at the top bar and select Make General Journal Entries.
  2. Fill in the fields with the correct information.
  3. Make sure your debits equal your credits.
  4. Click Save or Save & Close.

 

For more information, see the following article: Create a journal entry in QuickBooks Desktop for Windows or Mac. It includes instructions for editing, reversing, or deleting an entry.

 

We also compiled a list of resources to assist users in navigating any accounting activities in QuickBooks. They're organized by topic, so you can open one right away.

 

If you have any other payroll-related concerns or questions about the product, let me know in the comments section below. Know that I'm always available to help. Have a wonderful rest of your day.

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