When it comes to keeping track of loans given to staff members, the accounting software QuickBooks provides a feature known as advance payment.The following are some of the actions that must be taken: You are necessary to select the accounting option from the panel on the left in the very first phase of the process.Now, go to the tab labeled Chart of Accounts, and select the New option from the drop-down menu.
How can I properly document a loan that was given to an employee?
- Select Accounting from the menu on the left
- Click the New button in the upper-right hand corner of the Chart of Accounts screen to create a new account
- Select Employee Cash Advances in the Detail Type drop-down menu after selecting Other Current Assets as the Account Type
- After that, click the Save and Close button
How do I record a loan in QuickBooks Online?
We will need to create a liability account in QuickBooks Online so that we can keep track of the loan that we took out. Your financial obligations are recorded in this account. Choose Settings > Chart of Accounts from the drop-down menu. Choose ″New″ from the menu in the top left. Alternate Current Assets or Current Assets can be selected as the Account Type in the Settings menu.
How do I record an employee advance in QuickBooks Online?
Let’s run through the steps of how to record these in QuickBooks Online. To begin, you’ll need to register for an account with Employee Advance (unless you already have one). If you hand out employee advances on a regular basis, having sub-accounts that use the employee’s name might be a great organizational tool.