Reimburse an employee for paying a business expense out of personal funds

cash back employee

reimburse employee

Follow the appropriate procedure to reimburse an employee who paid for a business expense out of his or her personal funds.

Note: If the purchase was for a small amount of money, you can reimburse the employee from your petty cash box, then record the petty cash expense.

• I want to pay the employee now

  1. Go to the Banking menu and click Write Checks.

  2. In the Write Checks window, click the Bank Account drop-down list and choose the checking account from which you want to reimburse the employee.

  3. In the Pay to the Order of field, enter the name of the employee.

  4. In the $ field, enter the amount spent.

  5. Click the Expenses tab.

  6. Click the Account drop-down list and choose the appropriate expense account.

  7. (Optional) Enter a memo.

  8. Save the transaction.

• I want to defer payment

  1. Go to the Lists menu and click Chart of Accounts.

  2. Double-click the Other Current Liability account that you use to track reimbursements owed to employees to open the account register.

     What do I do if I don't have an account for reimbursements?

  3. In the Payee column, enter the employee's name.

  4. In the Increase column, enter the amount owed to the employee and then press Tab to move to the next line.

  5. Click the Account drop-down list and choose the appropriate expense account.

  6. Enter the employee's name in the Memo field.

  7. Click Record.

  8. When you reimburse the employee later, use the Write Checks window.

     Click the Account drop-down list and choose the Other Current Liability account (not the expense account) so that the reimbursement check reduces the amount owed.