Accrued payroll expense

Welcome to the Community, @Haris4535.

Let me share some insights about why the balance sheet amounts for Accrued Payroll are not consistent monthly in QuickBooks Online (QBO).

One potential reason is the shortfall in the 3rd and 4th months' Accrued Payroll Expenses could be an incorrect account posting, or it may not have been recorded.

In QBO, it is important to ensure that the balance sheet date range matches when you created the Journal Entry for payroll. If confirmed, you can verify the transactions in the Accrued Payroll expense account to check if the correct amount is posted.

I'll also add these articles to guide you through the process of managing your payroll in QBO: 

• Create and run your payroll
• Set up and manage payroll schedules

I’ll be around the corner if you need an extra pair of hands in any QuickBooks-related matters. Stay safe, @Haris4535.

Hi, I'm currently recording payroll accruals. However, I'm unsure how to handle the reversal next month if there's a difference due to a change in the home currency exchange rate. Specifically, which rate should I use when reversing the entry? Thank you 

Hello there, cgs33. I'm here to lend a hand.

QuickBooks Online (QBO) uses exchange rate from IHS Markit, and the rate displayed in your QBO account fluctuates day by day based on the current rate. When reversing the entry next month due to a change in the home currency exchange rate, it's important to use the exchange rate applicable for the reversal date to ensure an accurate reflection of the financial impact of the currency rate change.

You may also consider contacting your accountant for expert guidance on handling this situation.

Additionally, here's an article that contains a list of payroll reports you can use to obtain information about your employees' earnings, taxes, and deductions.: Run payroll reports in QuickBooks Online Payroll.

If you have any concerns about managing payroll, feel free to comment below, cgs33. I'd be more than happy to address them for you. Have a great day!

Ok. What should I do with the difference due to the change in the exchange rate? Should I create a journal entry debiting the Exchange Gain or Loss and crediting Payroll Liability if there's a loss in exchange? What is the best practice for this? Thank you.