Setting up QB desktop as of 01/01/19. Small business, 1 employee (me). Accrued a payroll/tax expense on 12/31 for 2018 that's a liability on 01/01/19. Where/how do I put this in the chart of accounts for the new setup? Also, is there a correct way to pay this liability for 2019? Going forward, was hoping to do manual journal entries for payroll/taxes, as I only pay myself quarterly. Is that feasible?
Well that sure worked! Thank you!!! One small question. Prior to creating this 2018 payroll liability account and now writing 2019 checks towards it, I had entered in capital stock, depreciation, and fixed assets as journal entries and balanced them in an opening balance equity item. Inputted the bank account opening balance as well. Had to make a journal entry for retained earnings. At that point the 2019 trial balance looked good. Once I created the 2018 liability account and paid from my 2019 cash in QB, this opening balance equity then went to the debit balance. Technically my company had a positive retained earnings for YE 2018. My question is does this opening balance equity number, apparently adjusted by the liability inputs, affect anything accounting-wise long term, or does it just go away at year end? Retained earnings and capital stock are my important numbers, and those still show up correctly in my 2019 trial balance.