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Level 1

mutiple bank accounts using one chart of accounts

My question is what affect does this impose: I have three(3) separate bank accounts (Operations, Payroll, Savings) on the same Chart-of-Accounts; the Operations Acct transfers money to the Payroll Account which is the account attached to the online payroll processing site; the expense is then recorded to the chart of account payroll expense line.  When pulling the P&L report; the payroll expense of course shows because there is only one chart of accounts.  Now to summarize: (1) Oper. Bnk Acct transfers money to Payroll Bnk Acct, (2) payroll is processed online (payroll bnk attached to online site); (3) from chart of acct, the Payroll Bnk Acct is selected and the payroll expense is recorded; (4) now pull the P&L report and the payroll expense show on the P&L; (4) remember the payroll is paid from Payroll Bnk Acct; (5) all expenses regardless of which bank it is paid from hit the one P&L which feeds from the one chart of accts.  Can you help with a better way that is less confusing?  

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QuickBooks Team

mutiple bank accounts using one chart of accounts

Hi there, fingrl2.

 

When we turn on our payroll service, we automatically create payroll expense and liability accounts. These accounts helps us track payroll items including salaries, wages, bonuses commissions, company contributions such as company fully and partially paid health plan and taxes.

 

We can looks into your payroll items to which payroll expense account we choose to affect it. I suggest reaching out to an accountant on how we should account these items. Just a heads up, the changes made will only affect future payroll transactions.

Here's how to check it: 

  1. Go to the Lists menu. 
  2. Select Payroll Item List
  3. Double-click on the first payroll item. 
  4. Click Next to see the affecting expense account. 

If we wish to affect it to the previous payroll, we can run a payroll checkup. I also have an article that will give us more information on what accounts we use and create in the Chart of Accounts.

 

Get back to me if you need anything else. Thanks!

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