Matching Payroll Expense to related revenue

Thanks for getting in touch with the Community, Melcher101. I appreciate your detailed information.

Payroll will always hit the register on your pay date. Since you're using a Payroll Assisted subscription, you have a Next-day (1-day) funding time. This means workers are paid the next banking day after you send your payroll to Intuit.

For example, if you want the payday to be Friday, you'd need to submit your payroll by Thursday before 5:00 PM PT. In the event you'd prefer to pay an employee on Wednesday, you'd need to submit payroll by Tuesday before 5:00 PM PT.

In regard to your second question, you'd have to go through the payroll setup and confirm your accounting is set to the appropriate account you want to be using.

You can use the steps from our following articles to do so:
 

• Create & run your payroll
• Set payroll preferences

If you have any further questions relating to this that aren't covered in those articles, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I've also included a couple detailed resources about working with payroll which may come in handy moving forward:
 

• When to send your direct deposit payroll
• Set up and manage payroll schedules

Please feel welcome to send a reply if there's any questions. Have an awesome Monday!

That does not really help. I shouldn't have to use excel to understand my business when the data exists in QB. I feel I'm wasting the money I spend each year in that I cannot see my KBI without a major project.

I have the same frustration.  I do an accrual and reversal at the end of each month to at least get the payroll in the correct month, but I would like to see it automatically go into the right week/month, based on the matching principle of accounting.  Reports should reflect the true profit/loss of a business by matching expenses to revenue.  

Hi @1935 1464 6723 779,

Thanks for reaching out here, I'd be happy to provide more insight. Automating the accrual and reversal process would indeed streamline your accounting and ensure more accurate reporting. Unfortunately, QuickBooks Desktop Enterprise does not currently offer an automatic feature. I'd recommend working with an accounting professional as mentionned by my collegue above. If you're in need of one, there's a tool on our website: Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide more helpful insights on this.

I am a professional accountant.  To the best of my knowledge, this problem can't be solved by an accountant or a pro-advisor.  Quickbooks needs to be changed so that the expense is recorded as of the pay ending date, rather than the paycheck date.  There is a place where the user chooses whether to use the accrual or the cash basis of accounting.  When "accrual" is chosen, I don't understand why payroll is then entered using the cash basis.

Hi @1935 1464 6723 779,

I understand your frustration. The discrepancy between the accrual basis setting and the way payroll expenses are recorded is a known issue among QuickBooks users. Ideally, payroll expenses should be matched to the period they pertain to, reflecting the true financial picture of the business. Since this is a limitation within QuickBooks, I recommend leaving feedback to our engineers so we can consider this during future updates to the software. The process to submit this suggestion to the developers is to submit Feedback in the system by clicking on the Gear icon > Feedback. 

If you have any other questions, feel free to reach out here.