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company expense advance

Forum|Forum|4 years ago
October 8, 2021
1 reply
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Our company advanced an employee a check to pay for anticipated expenses (not an actual expense). After the expenses were paid, expenses were less than the advance, so a check was written by EE to the company for the difference. How do I book the advance, the expenses (probably as normal) and the return (not = income)?

QuickBooks Online

Best answer by Rea_M

I'll make sure you're able to record your business expenses accordingly in QuickBooks Online (QBO), @Angela C.

Based on your scenario, yes, you can book the advanced check as a business expense. You'll first need to add the employee as a vendor (i.e., [Employee] Company Advanced). Then, treat the difference (check written by the employee) as a reimbursement. This way, you can keep your financial data accurate.

When you're done adding an employee as a vendor, you can create the advanced check by following these steps:

Go to the + New button.
Select Check.
Choose the Payee from the drop-down.
From the Bank account drop-down, select the account the check withdraws money from.
Complete the check fields you need.
Select the Print check option if you want to open the check queue to print now. Or select the Print later checkbox if you want to print the check later.
Select Save and close to close the check window.

Once the employee writes the check to the company for the difference, you'll have to record it as a reimbursement. For the step-by-step guide, you can refer to this article: Enter a refund from a vendor.

Then, I'd recommend pulling up the Check Detail report. This way, you can verify that the checks you've written are recorded appropriately. To do this, go to the Expenses and vendors section from the Reports menu's Standard tab.

In keeping with this, I'm also adding this article to further guide you in managing your expenses and vendor accounts in QBO: QuickBooks Help Articles for Expenses and Vendors. It includes topics about paying expenses, managing inventory, and purchase orders, to name a few.

Please don't hesitate to let me know if you have other concerns about managing business expenses in QBO. You can drop a comment below, and I'll gladly help. Take care, and I wish you continued success, @Angela C.

R

Rea_MAnswer

I'll make sure you're able to record your business expenses accordingly in QuickBooks Online (QBO), @Angela C.

Based on your scenario, yes, you can book the advanced check as a business expense. You'll first need to add the employee as a vendor (i.e., [Employee] Company Advanced). Then, treat the difference (check written by the employee) as a reimbursement. This way, you can keep your financial data accurate.

When you're done adding an employee as a vendor, you can create the advanced check by following these steps:

Go to the + New button.
Select Check.
Choose the Payee from the drop-down.
From the Bank account drop-down, select the account the check withdraws money from.
Complete the check fields you need.
Select the Print check option if you want to open the check queue to print now. Or select the Print later checkbox if you want to print the check later.
Select Save and close to close the check window.

Once the employee writes the check to the company for the difference, you'll have to record it as a reimbursement. For the step-by-step guide, you can refer to this article: Enter a refund from a vendor.

Then, I'd recommend pulling up the Check Detail report. This way, you can verify that the checks you've written are recorded appropriately. To do this, go to the Expenses and vendors section from the Reports menu's Standard tab.

In keeping with this, I'm also adding this article to further guide you in managing your expenses and vendor accounts in QBO: QuickBooks Help Articles for Expenses and Vendors. It includes topics about paying expenses, managing inventory, and purchase orders, to name a few.

Please don't hesitate to let me know if you have other concerns about managing business expenses in QBO. You can drop a comment below, and I'll gladly help. Take care, and I wish you continued success, @Angela C.

A

Angela CAuthor

Do I do anything (in QBO) with the receipts for the actual expenses paid, or just comment in the memo what the expenses were (and maybe upload the receipts)?

R

RCV

Thanks for coming back, Angela C.

Yes, we can do both by uploading receipts for the actual expenses paid and manually enter the details in the Memo or Description field. To upload receipts to QuickBooks, just follow the steps below:

Sign in to QuickBooks Online.
Go to Transactions, then Receipts.
Select Upload from computer or Upload from Google Drive. Each image or file should only contain a single receipt or bill.

If you have a receipt or bill, you can also email your receipt or bill to QuickBooks Online and we’ll extract info from it to create a transaction for you to review. To learn more about this one, see the Upload your receipts and bills to QuickBooks Online article. Once your receipts are in QuickBooks, follow these steps to review and categorize them into the correct accounts.

Then, we can customize a Transaction Detail by Account report to show your expense transactions. Let me guide you on how to do that:

Go to the Reports tab.
On the Find report by name field, look for Transaction Detail by Account.
On the report, click the Customize button.
Click on Filter to expand the options.
On the Transaction Type drop-down, select Expense.
In the Account drop-down, mark the accounts you'd like to view in the report.
Press Run report.

You can customize the report to focus on other details that really matter. After that, just memorize the report to save the current customization settings. Feel free to visit our Reports page for more insights about managing your financial reports in your account.

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. I'm just one reply away. You have a good one.

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