Handling Employee Reimbursements For Expenses: Case Study

QuickBooks Tip - Handling Employee Reimbursements for Expenses
By Nancy Smyth | Submitted On January 26, 2011

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Expert Author Nancy Smyth
Handling employee reimbursements for business related expenses, including mileage, should not be run through payroll in QuickBooks.

When an employee uses his/her own money to pay for a business related expense it is money that they have loaned the company, and the company should account for those expenditures in the same manner in which they would if the company had made the expenditures themselves - in other words -
Recording Reimbursements for Indirect Expenses, such as Telephone, Gas, Mileage, Purchase of Small Tools, Postage, etc.

When an expense report is submitted that includes any of the Indirect Expense items shown above, when you write the check or enter the bill, you will want to use the Expense Tab to record the amounts, if you will be including any of these costs on a customer invoice, click (check) the Billable option) and when you create the invoice, click on Time & Expenses to pull these costs onto the invoice. If these costs will not be billed to the customer, do not check the Billable column.

Recording Expenses for Job Materials or other Direct Job Related