USA Expense reimbursement paid for by members

[dmca]

We are a small nonprofit and sometimes members will pay for approved expenses, then give us the receipts for reimbursement. We use QBO and I was wondering what might be a better way of recording these reimbursements.

As of now, I record a check to "pay later," with each item on the receipt separated to its appropriate account. Then when the check is written, the date is changed and the check number added.

We would like to use a Reimbursement liability account for ease of grouping those checks that need to be written, and also if we could reduce the number of "vendors" in quickbooks, that would also be helpful.

Thanks in advance.

 

[Larry Bailey]

I might not understand the question properly but, I have been the accountant on a few NPO's. In handling expense reimbursements, I expect the volunteer to submit and expense reimbursement form. Usually I ask that the forms be turned in monthly unless the expenses are significantly large enough to warrant more frequent submittals. The volunteer will most likely want to get reimbursed quickly so, upon turning in the expesne reimbursement form, I cut a check that day or the next. The allocation of expenses is pretty simple....mileage/travel, meal, supplies, room rent etc. These most of the standard categories. The vendor is the volunteer. If it is near the end of the month and I don't have time to write the check, I will set up and A/P to the volunteer and then relieve that account when I do write the check.

 

[dmca]

I like the monthly idea! Our problem has been that they are submitted sporatically thru the month and we want to record them right away but not pay right away.

 

[Larry Bailey]

You can book the expense at any time by setting up and A/P when you get the reimbursement request. When you cut the check later, you just relieve the A/P you set up.