Private expenses from your employees can be paid directly to the employee’s account. Here is how it works.

If your employees make a private expense for the company, you can pay it directly from the bank to the account. You can then book it as a normal expense against the bank.

However, you technically miss the actual transfer from your bank to the employee's - which some accountants or tax people may be unhappy about. So the correct thing to do is to create a short-term liability account for the employee and post to it.

Create an account

• Go to Settings (the gear)
• Select Organization at the top (there is both Profile and Organization) > select Accounting
• Select Edit chart of accounts at the bottom
• Click on Create account in the top right corner
• Account type must be Short-term liabilities
• Add an account number
• Fill in the name and write for example Expense "name"
• Tick Allow payments on this account
• Add a description if you want (optional)
• ⚠️ The VAT field must be empty
• Tap Save account
   

Check the liabilities

You can always see how much the company owes the employee by going to the balance sheet :

• Go under Reports > Balance sheet > Short-term liabilities