Hi all,

I have a question regarding employee reimbursements and cash flow.

Currently, we record employee expenses as a liability, and employees are reimbursed through payroll.

When we reconcile our monthly cash flow forecast, the End Cash amount, which is the difference between Net Income/Loss and the prior month’s Total Checking/Savings does not match the actual amount of cash on hand. We suspect the employee reimbursements are why this figure is always off.

Is there a way to account for reimbursements that we process through payroll?

Thanks in advance for your help!

Best, 

Giselle