If your particular business has a certain policy that enables you to grant advances to your employees on the payroll, then using QuickBooks payroll software is the best-recommended option for you.
As per industry experts, this is the best way to record the advance that can be reimbursed to the organization via payroll deductions.
What is an Employee Advance in QuickBooks?
An Employee Advance account in QuickBooks is used to monitor the funds which are paid to any employee to take care of the travel expenses or any early withdrawal of paychecks.
How to Import Employees into QuickBooks Desktop using Dancing Number?
Why do you Need to Create Employee Advance in QuickBooks?
If you are a business owner, you must be aware of the fact that there are situations when giving employee advances becomes unavoidable.
There are two possible reasons for this, you either purchased an item for the employee and he/she has made an agreement to pay you back or you are providing an employee an advance on their upcoming check.
How to Create an Employee Advance in QuickBooks?
Here are the steps to create an Employee Advance check in your QuickBooks account:
Step 1: Go to your QuickBooks Desktop Banking menu, and choose Write Check.
Step 2: Choose the particular bank account in the Bank Account drop-down list.
Step 3: Choose the date for the particular check.
Step 4: Choose the employee from the specific drop-down list that says Pay to the Order and then press OK displayed on the screen.
Step 5: Put the dollar amount of the particular advance right beneath the check date.
Step 6: Choose the account from the particular Expense tab Account menu list.
Step 7: Mark the Print Later box right next to the particular Print icon.
Step 8: Choose Save and Close.
How Dancing Numbers will Help You?
Dancing Numbers is SaaS-based software that can easily be integrated with your QuickBooks account. You can import, export, and delete lists or transactions from your company file. Using Dancing Numbers you can simplify and automate the process, saving time and increasing productivity. Just fill in a few fields and apply the relevant features to complete the task.
It saves your time and money that you can invest in your business. It has no human errors, works automatically, provides a user-friendly interface (easy to use and learn), and more. You can also have access to the comprehensive features set if you use it to Bulk import, export, and delete services.
Do the Cash Advance needs to be Reported in the Company Account?
The cash advance is required to be reported as a reduction in the Cash Account of the company and also as an increase in the asset account like Advances to Employees.
Will the Account be Reported as a Current Asset?
If the particular amount is repaid in a year, the account will be reported as a current asset.
In QuickBooks, can you use other current Asset Accounts to Monitor the initial Check issued to the Employee?
Yes. In QuickBooks, any other current asset account can be used to track and monitor the initial check that has been written to the particular employee.