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Level 1

Post Payroll using a bill

My accountant thinks I'm crazy, but I'd love to know if there's a real reason NOT to create a bill for payroll other than "nobody does that". 

 

Our bookkeeper just left us and was entering payroll in the typical journal entry way and using accrual accounts. I don't see why I can't create a bill for payroll including each line of debit and a negative number for credit. This lets me create the bill in the month that I need it and then make it due on the actual pay date. 

 

I'd rather not use accrual accounts as it seems like an extra step. Thoughts? Thanks! 

Solved
Best answer April 15, 2019

Best Answers
Highlighted
Moderator

Post Payroll using a bill

Hello, elizinrichmond.

Thanks for the quick response. Allow me to take over and provide you with some insights about posting payroll using the journal entry in QuickBooks Online.

 

To answer your question, yes, this is the standard method in QuickBooks Online for accounting reason. Journal Entry is a posting transaction, if you wish to accrue the payroll in the month of April, you can enter the journal entry dated in April so it will affect that month.

 

You may find this article helpful: Record payroll transactions manually.

 

Also, these articles are a good reference:

 

For additional help, you can reach out to our QuickBooks Online Support. To reach us, please follow these steps:

 

  1. Sign in to your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. Select Contact US on the pop-up.
  4. Enter a brief description of your concern then hit Continue.
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

Keep me posted if you have any other questions about posting payroll in QuickBooks Online. I'd be more than willing to lend you a hand.

View solution in original post

3 Comments
Highlighted
QuickBooks Team

Post Payroll using a bill

Thanks for reaching out to the Community, @elizinrichmond.


I’m here to share some information about entering payroll in QuickBooks.


With QuickBooks Online, the right way to manually record payroll is by using a Journal Entry. Doing so will allow the program to generate payroll reports for tax purposes. Let me show you how:

  1. Go to the Plus icon and select Journal Entry.
  2. Choose the date of the paycheck.
  3. Type in the Journal Entry number. 
  4. Enter the appropriate debit and credits for the account.

 

 

I recommend consulting an accountant on which specific accounts to use in recording the transaction to ensure your books are correct. For more in-depth information on this matter, check out this article: Record payroll transactions manually.


If you use a bill, QuickBooks won’t be able to pull up payroll reports, create W-2s, and other forms since it has a different concept of sources and targets.


Here's an article about the important payroll reports in QuickBooks: Run payroll reports.


That should answer your concern for today. 

 

Post again in the Community if you have any other questions, I’m always here to help. Take care!
 

Highlighted
Level 1

Post Payroll using a bill

Thanks for your reply! 

 

I use an outside payroll provider, so I don't need reporting if that makes a difference. Also, the journal entry won't let me accrue it in the month that it's earned, not paid. If I sent up a bill with a due date of March 31, then all of the expense is accrued in March rather than the date I pay payroll which would be April 5. 

 

Does that make a difference, or is the standard method the best for some other accounting reason? Thank you again!! 

Highlighted
Moderator

Post Payroll using a bill

Hello, elizinrichmond.

Thanks for the quick response. Allow me to take over and provide you with some insights about posting payroll using the journal entry in QuickBooks Online.

 

To answer your question, yes, this is the standard method in QuickBooks Online for accounting reason. Journal Entry is a posting transaction, if you wish to accrue the payroll in the month of April, you can enter the journal entry dated in April so it will affect that month.

 

You may find this article helpful: Record payroll transactions manually.

 

Also, these articles are a good reference:

 

For additional help, you can reach out to our QuickBooks Online Support. To reach us, please follow these steps:

 

  1. Sign in to your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. Select Contact US on the pop-up.
  4. Enter a brief description of your concern then hit Continue.
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

Keep me posted if you have any other questions about posting payroll in QuickBooks Online. I'd be more than willing to lend you a hand.

View solution in original post

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