We have two different accounts linked to Quickbooks, one is our main account(A) and another is payroll(B).
Contractors are issued checks and cash them through the payroll account each week. We were currently recording the transfers from account A to B in one lump sum, ex. $4,000 for the week, under payroll expenses to capture.
Now my employer wants to enter each contractor and match the weekly checks. Do I enter as a check and select the payroll account? Or as an expense and/or bill and match it up from the payroll bank feed?
Lastly, how will this affect the current amount under payroll expenses in my reports.
Thanks for sharing the detailed steps you'd like to achieve, Carm20.
To manually record the payroll checks in QuickBooks Online, we can create a journal entry. This helps keep all your payroll data in one place.
Go to the + New icon.
Select Journal entry.
Choose the date of the paycheck.
Select the correct debit and credit account.
Enter the other necessary details.
Once done, click on Save and close.
I also recommend consulting an accountant so that you'll be guided with the correct posting accounts to use.
As for the amount under Payroll Expenses in the reports, the updated balances will display after creating the entries. I also suggest clicking on the amount to view the details associated with the transactions.