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smizell
March 30, 2024
Question

Employee Reimbursable expense management

  • March 30, 2024
  • 1 reply
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We are a consulting firm with employees that use their own money for travel to client sites.  We have QBOA and would like to use the employee expense function to allow our employees to enter their travel expenses.  We would also then like to apply these expenses to our open projects to which the work was assigned.  Some of this is billed to the client and others are included in our lump sum pricing.  

 

I have started experimenting with the employee expense function, but when I go to apply the expense to a project, it is requesting a payee and payment account.  Should the payee be the employee? And the payment account the account we would ultimately reimburse them from? This is where is gets confusing to me, because my understanding is to set up an employee reimbursable account to track these, but I created those and they do not show up in the list.  Maybe I'm jumping a step?

    1 reply

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    IrishNinoJ
    March 30, 2024

    You're already on the right track, smizell. Let me help you reimburse your employee's travel expenses in QuickBooks Online.

     

    Yes, the employee is the payee, and also the payment account is the bank account you will use to refund them. 

     

    Regarding the employee reimbursable account, it should be set up as a liability account. This way you will be able to select the Category dropdown when issuing the reimbursement.

     

    If you've already done this process, but it is still not showing. Let's ensure that the account is active. Here's how:

     

    1. Click the Gear icon.
    2. Select Chart of accounts.
    3. Next to the Printer icon, select the Cog icon.
    4. Tick the Include inactive checkbox.
    5. Locate the appropriate liability account, then select Make active.

     

    To record the expense, check out the detailed steps below:

     

    1. Click the + New button, then choose Expense.
    2. From the Payee dropdown, select the name of your employee.
    3. Set the correct Payment account.
    4. Select the Category dropdown, then select a liability account. 
    5. Enter the amount owed to your employee.
    6. Check the Billable option if you wish to offset the expense onto your customer's invoice.
    7.  Select a project from the Customer/Project dropdown.
    8. Hit Save and close.

     

    As your future reference, I've added this article in case you want to personalize and add specific info to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

     

    If you have further concerns about employee expense in QuickBooks Online, feel free to come back here in the Community. We're here to assist you 24/7.

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