Keeping your payroll account and transactions updated in QuickBooks Online (QBO) is my priority, @Tanya45. That's why I'm here to guide you about this.
Your payroll setup determines the accounts used to record payroll expenses. You'll have to make sure the transactions from the bank are reflected properly in QuickBooks to credit the liability accounts. You need both the direct deposit and the payroll expense transaction if they're recording different payroll data.
With this, you need to match your downloaded transactions to the existing entries in QBO to avoid duplicates. To do this, here's how:
- Go to the Banking menu or Transactions menu.
- Select the tile for the account you want to review.
- Go to the For review tab.
- Select the downloaded transaction to expand the view.
- Review the Matching records found in QuickBooks or select the Find match section.
- Select the link next to each match to get more details.
- Make sure this is the correct match. In particular, review the Deposit to, Payment method, and Bank account fields on forms for the existing transaction in QuickBooks.
- Click Match.
To learn more about the process above, please refer to this article: Categorize online bank transactions in QuickBooks Online.
Then, you can get a closer look at your business finances and employees' account by pulling up a variety of payroll reports. To see the complete list and how you can access and customize them, you can visit this article: Run payroll reports.
Also, I'd recommend reconciling your payroll account every month. This way, you can monitor your transactions and detect any possible errors. For the step-by-step guide, you can check out this article: Reconcile an account in QuickBooks Online.
Let me know in the comments if you have other payroll concerns and questions about managing transactions in QBO. I'll gladly help. Take care, and I wish you continued success, @Tanya45.
