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Kris Z
June 27, 2020
Question

How to record an employee cash advance for non-payroll

  • June 27, 2020
  • 1 reply
  • 0 views

I need to record a cash advance for employee's business travel expense, which will not be reduced in the payroll. I was trying to set up an Employee Advance account in other current asset and create the employee as a vendor. We will directly deposit the advance into employee's bank account. At this moment, should I record the cash advance as the regular bill following the regular direct deposit procedures? 

 

Then how should I record the expense to reduce the employee advance account balance?

 

If the employee need repay the advance, how to record?

 

Is the general ledger the only way I can use?

 

Thank you!

1 reply

AddieC
AddieC
June 29, 2020

Hi Kris Z, 

 

Running your business with QuickBooks means that you'll save so much time and effort with your bookkeeping tasks. When you need to process things such as a cash advance for your employee, it's so important to make sure the method used to do so will impact your books in a way that suits your needs. It sounds like you've given this a lot of thought so far, and I'd be happy to point you in the right direction for further assistance with this. 

 

Since you're trying to issue a cash advance to your employee outside the payroll module, the method you use to record this transaction will need to be approved by your accountant. By consulting an accounting professional, you ensure that your books will continue to be accurate and follow proper accounting guidelines. 

I'd suggest reaching out to your accountant to find out if you should record the cash advance using the method suggested, and also how you'll go about recording the repayment when the time comes. 

 

If you're not yet connected to an accountant, you can find one in your area here: Find a ProAdvisor. ProAdvisor accountants are specifically trained in QuickBooks, and they'll be able to direct you towards the best solution in this case. 

I hope this helps get you pointed in the right direction. If you have any other questions, our tech support team is standing by to help. 

Have a wonderful week. 

 

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