Staff loan

Welcome to the Community space, Habib Taan.

I can share some steps on how you can record the transaction in QuickBooks but before doing so, please consult your accountant. They'll be able to give you the best accounting advice for your business.

Staff loans or advances are an asset since they owe you the money. We can set up a Current Asset account and select the Detail Type as Employee Cash Advance by following these steps:

1. Go to Accounting > Chart of Accounts.
2. Click New.
3. From the Account Type drop-down menu, select Current Assets or Other Current Assets.
4. Under Detail Type, choose Employee Cash Advances.
5. Enter the account's name and hit Save and Close.

Once created, you can record a journal entry debiting the new account and crediting the account where the money was taken out. When you get the payment for the loan, record it as a deposit. Here's a link for the step by step instructions: Record and make bank deposits in QuickBooks Online.

You're welcome to post a reply here if you have any additional questions about the process or need help with other task in your account. Have a great day ahead!