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Community Contributor *

Manual Payroll

Hi,

This situation is quite complicated,

I do the books for a company that pays part of the employees via BACS and part by cash, the accountant does the payroll on a separate software and gives me weekly sheet of the payroll and i need to determine how much to transfer from the cash account to the wages, the payments by BACS are currently put in as an expense, how do i make a liabilty account that would make the BACS payments into a +, how do i put the net pay into the liability and how do i transfer the cash making it to a +????

I know i'm working in reverse but that's the situation...

I would appreciate help on this.

2 REPLIES 2
QuickBooks Team

Re: Manual Payroll

Hello there, @Books_Plus.

 

Let me walk you through in creating a liability account and use it in recording your payroll deductions. Also, you need to create a payroll expenses to record the gross cost of the payroll, so the gross costs on payroll hit your Profit & loss. 

 

Here's how to create a liability account:

  1. Go to the Lists menu.
  2. Choose Payroll Item Lists.
  3. Double-click the payroll item to edit it.
  4. Click Next.
  5. Make sure to select Payroll Liabilities for the Liability account field (see screenshot).
  6. Click Next.
  7. Click Finish.

 

Once completed, use the accounts when wring check to pay your payroll related expenses. I'd also recommend consulting with an accountant so you'll be guided properly in accounting your payroll expenses.

 

For more additional insights, you may check these articles:

Feel free to leave your comments below if you have other questions. I'm just a few clicks away.

Community Contributor *

Re: Manual Payroll

Thanks @juVielL,

How do I process a payroll liability to this account as well how do I process a payment to an employee from this account. And how would I move from the cash account to this payroll account?