Tallie How-To: Cash Advance Workflow & Expense Reports in QuickBooks Online

Tallie’s bi-directional integration makes it easy to import data from expense reports into QuickBooks Online. If you are a QuickBooks Online user who wants to create cash advances for your employees, here’s the best solution. This article will cover:

  1. How to create a cash advance account in QuickBooks Online.
  2. How to create and pay the cash advance.
  3. How to create the credit.
  4. How to apply the credit to Tallie’s exported bill.

1. To Create a Cash Advance Account in QuickBooks Online:

Click on Transactions, then Chart of Accounts, and then New.

Select Other Current Assets as the category type, which will reveal Employee Cash Advances. Select this option.

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Click Save.

2. To create and pay the cash advance:

Click on the plus icon, then and select Bill under the Vendors column.

Input the amount you want to advance your employee, then map it to the Employee Cash Advances account.

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Click Save and close.

Next, click the plus icon, then select Pay Bills under the Vendors column.

Click on your newly created bill, then select Make Payment.

Click Save and close to cut the check.

3. To create the credit:

Click the plus icon, then select Vendor Credit under the Vendors column.

Enter the amount of the cash advance, and assign it to the employee. Be sure to map it to your Employee Cash Advances account once again.

Click Save and close.

Check Your Work: Click Transactions and then Chart of Accounts.

Scroll down to the Employee Cash Advances account and click the arrow under the Action column. Select Report from the drop down menu.

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Make sure that the Bill and Vendor Credit are both present and that the Employee Cash Advances Account has a zero balance.

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4. To apply the credit to Tallie’s exported bill:

After your employee spends the advance, they will submit their expense report in Tallie. Approve the report to export it to QuickBooks Online.

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Click Pay Bills under the Vendors column in QuickBooks Online.

Find your employee’s expenses beside their available credit. Occasionally the expense and credit amounts are equal. However:

  • If your employee spent more than the total cash advance, the excess will be paid with the bill.
  • If your employee spent less than the total cash advance, the remaining credits can be kept to use later.

NOTE: You may also ask the employee to pay back the difference right away. In some states, terminated employees are not legally obligated to repay any advances or loans to their ex-employers.

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Click the employee’s name, then the Make Payment button.

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You may now apply the credit. Check the boxes next to the Vendor Credit and Bill.

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A popular, fast-growing alternative to cash advances is the PEX Visa Card. PEX Cards allow you to preload funds for your employees without the risk of misuse. All charges made on your PEX Card appear immediately within Tallie for review.

Want to learn more about Tallie’s integration with QuickBooks Desktop and QuickBooks Online? Check out these helpful guides:

QuickBooks Online & Beyond: What It Means to Have True Bi-Directional Integration for Expense Management
Five Reasons to Make the Switch to QuickBooks Online for Expense Management and More
Invoicing Expenses in QuickBooks Online: Optimize Billable Expenses Through Service Items, Attachments and Markups

Automate your expense reports with Tallie FREE for 14 days – no credit card or commitment required. Care for a walkthrough by a trained expert first? You can schedule a free Tallie product demo with one of our experts.

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