Recording employee expenses

Hi, we have a couple of employees, these guys purchase bits for the company during the course of business then submit a monthly/bi-monthly expense claim which we pay in a lump sum to them, so the bank tagging shows one lump payment, like it would for a credit card payment.

What we do with credit card payments is have a bank account for the credit card, tag the current account payment to the credit card account and the credit card account then has all the transactions entered in it, this works well.

Should we do something similar for employees and if so what type of account do you recommendd (as you guys will no doubt end up doing our end of year I prefer to get this right), its not a bank, its not petty cash or a credit card etc?

Thanks in advance

You may find the following posting on the subject helpful:

Procedure For Handling Employee Expense Payments

perfect, tried hard searching first as figured the answer would be on here but failed to find the post you did, thanks for pointing it out, its what I did in the end so thats good :slight_smile:

thanks once again

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