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
Go to the Banking menu and click Write
In the Write
Checks window, click the Bank Account drop-down list
and choose the checking account from which you want to reimburse the
In the Pay to the Order of field, enter the name of the
In the $ field, enter the amount spent.
Click the Expenses tab.
Click the Account drop-down list and choose the appropriate expense
(Optional) Enter a memo.
Save the transaction.
I want to defer payment
Go to the Lists menu and click Chart
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?
In the Payee column, enter the employee's name.
In the Increase column, enter the amount owed to the employee and
then press Tab to move to the next line.
Click the Account drop-down list and choose
the appropriate expense account.
Enter the employee's name in the Memo
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.