On a few occassions one of our staff members has paid cash for a bill and this has then been paid back over to him via his wages as 'expenses '- the original invoice has then been handed over to me to process through petty cash - is this way of dealing with staff expenses ok or should it dealt with differently.
Dont want to go down the route of setting up employees as suppliers.
Thank you Liz for replying to my query - the staff memeber did actually pay cash for the invoices - and then sent the invoices through to us - this was reimbursed through his wages as 'expenses' - so is it ok to then put the invoice through our accounts as though it has been paid through our petty cash - or do i need to make an additional journal entry to correct - say through wages - it just doesnt seem as though it is being dealt with correctly? is it being doubly accounted for - as the expense to the business has already been paid through his wages ????? so confused
You seem to be confusing the businesses petty cash with the staff members own personal cash. If a staff member paid for it out of their own money, it is irrelevant whether they paid by cash, cheque or card. If they paid out of the businesses petty cash, then they do not get reimbursed personally and the invoice is posted to petty cash.
Assuming that the staff member paid out of their own pocket, you need to make the journal entries that Liz has given you. Otherwise your petty cash won't balance - as you will have posted an entry but not removed the cash - and the invoice will have been doubly accounted for.
Thankyou Helen - I really appreciate that - given that he did pay out of his own personal money - and was later reimbursed through his wages as expenses - should the invoice not be posted through the accounts at all then? or should there be a journal posted to take the expenses out of the wages figures and input to the correct expense account?
Reimbursement of expenses are not wages - they can be paid with wages, but are not subject to deductions as wages are, and should not be recorded in your accounts as wages. For the example you've given, you need to be making the journal entries that Liz has given you.
It's easier if you stop making duplicate posts each time you reply to any of us - as for anyone else looking to help you it's a bit confusing since you've made duplicate entries asking for the same information. Much easier if we can see what someone else has advised you when we answer!
