Managing employee expenses can be a time-consuming and error-prone process. But what if your accounting software and expense management solution worked together seamlessly? Zoho Books, a cloud-based accounting software, offers a comprehensive suite of features to manage invoices, bills, bank accounts, and financial reports. Zoho Expense, on the other hand, is a dedicated expense management solution that helps track employee spending and simplify reimbursements. Integrating Zoho Books and Zoho Expense can significantly improve financial efficiency by automating accounting entries and eliminating manual data reconciliation. Zoho Expense automatically passes all approved expense reports, advances and reimbursement’s accounting effect to zoho books.
In this blog post, we'll explain what entries posted in Zoho Books when an expense report is approved, an employee asks for an advance, or gets reimbursed for an expense.
Automatic Entries
1. Approved expenses:
Once an expense report is approved in Zoho Expense, it's automatically pushed to Zoho Books as an expense. This includes details like expense amount, category, vendor, date, and any attachments.
Journal:
Expense category a/c Dr.
To Employee reimbursement
Below attached screenshot for how approved expense report reflects in Zoho books.
Zoho Expense Approved Report
How above-mentioned entries reflects in Zoho Books.
2. Advance payments:
When you create an advance payment for an expense in Zoho Expense and it’s approved, it automatically creates a corresponding prepayment in Zoho Books. This helps track and reconcile advance payments accurately.
Journal:
Employee Advance a/c Dr.
To Bank/Cash a/c (whichever account we have selected in paid through field)
Below attached screenshot for how approved advance reflects in Zoho books.
Advance recorded in Zoho Expense
How above-mentioned entries reflects in Zoho Books.
3. Report Reimburse:
Once you reimburse to the employee on particular report and record reimbursement to the Zoho Expense, system will change the report status to the reimbursed and pass entries as mentioned below.
Journal:
Employee Reimbursement A/c Dr.
Employee Advance A/c Dr. (if any applied to report)
To Bank-Cash A/c
Below attached screenshot for how reimbursed report reflects in Zoho books.
Reimbursed report in Zoho Expense.
How above-mentioned entries reflects in Zoho Books.
4. See full accounting reporting in Zoho Books.
