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R
rcdmail
January 13, 2022
Question

Payroll question/P&L

  • January 13, 2022
  • 3 replies
  • 10 views

Problem: We use QBO, and our business is cash-based, not accrual. We also use direct deposit, and the period in question is our second pay period of each month, 16-31. Since we cannot process payroll until after the close of business after the last day of the month, our payroll falls into the wrong month because we are processing it in the next month. That means our P&L is incorrect because the payroll cost goes into the wrong month.

We thought a journal entry each month would help with this problem, but that won't work. We need to move the payroll cost out of one month (same GL account) into the prior month (same GL account), which doesn't work.

Any suggestions?

 

Chrisanne

3 replies

R
Rea_M
Level 10
January 13, 2022

I'm here to share some suggestions as to how you can appropriately post your payroll transactions on financial reports in QuickBooks Online (QBO), @rcdmail.

 

QuickBooks uses the paycheck date when posting your payroll data on financial reports (i.e., Profit and Loss). With this, you may either manually create your paychecks or send your direct deposit paychecks early (within the month). Then, I'd also recommend consulting your accountant for other options.

 

Also, you can get a closer look at your business's finances and employees' accounts by pulling up payroll reports. To see the complete list and each of their definition, I'd recommend checking out this article: Run payroll reports.

 

Please don't hesitate to let me know if you have other concerns about managing paychecks in QBO. Drop a comment below, and I'll gladly help. Take care, and I wish you continued success, @rcdmail.

Rainflurry
Rainflurry
Level 11
January 13, 2022

@rcdmail 

 

The paydate (date of direct deposit) is the effective date of payroll expenses for financial reports as well as your 941s.  This is standard procedure.  If your pay period is from January 17-30, but your paydate is Feb. 4, than the Jan. 17-30 payroll shows on your Feb. P&L.  You don't change that.      

R
rcdmailAuthor
January 13, 2022

Anyone else have any suggestions besides 1) you don't change that and 2) going to desktop or doing payroll the same month you want it to show in P&L. Both of which will not work for us. There has got to be a work-around.

 

Chrisanne

G
GebelAlainaMQuickBooks Team
QuickBooks Team
January 13, 2022

I understand the urgency of this matter, @rcdmail. I can route you with our Payroll Support team to help you resolve the issue.

When you pull up the Profit and Loss report, it will really follow the pay date. You can contact our Payroll Support team for they have the best tools to look into your account and help you resolve the issue.

Here's how to contact our Payroll Support team:
 

  1. Sign in to your QuickBooks Online company.
  2. Go to Help.
  3. Select Contact Us.
  4. Enter your concern, then select Let's talk.
  5. Choose a way to connect with us:
  • Start a chat with a support expert.
  • Get a callback from the next available expert.
     

You may also visit our Employees and payroll taxes page to learn some tips on how QuickBooks Online Payroll works.

You can always count on me if you need any further assistance with paychecks and on how to manage your QuickBooks Online Account. Stay safe!

 

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