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- Short-term loansLearn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Salary advances are short-term loans given to employees that are deducted later from future salaries. Some companies allow such advances. The advance amount is deducted from the net income at the end of the month and over the forthcoming months.www.keka.com/glossary/salary-advances
An advance paid to an employee is essentially a short-term loan from the employer. As such, it is recorded as a current asset in the company's balance sheet. There may not be a separate account in which to store advances, especially if employee advances are infrequent; possible asset accounts in which to store this information are:
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