You’ve come to the right place, Sahm.
You can only transfer funds between all your balance sheet accounts, such as assets, liabilities, and owner’s equity. However, payroll expenses are vital components of your Profit and Loss report. This is the reason your expense account isn’t showing in the Transfer Funds To drop-down. See the first screenshot below for your visual reference.
The recommended way to do this is to create an expense. This allows you to record the transfer from your bank account to your employee salary account. Let me guide you through the steps.
- Go to the Create (+) icon at the upper right.
- Select Expense under Suppliers.
- Leave the Payee field blank.
- Choose your bank account as the Payment account.
- Select the Payment date and specify the Payment method for the expense.
- Choose Payroll expense as the Category.
- Enter the Description to help you identify this transaction.
- Type in the salary amount.
- Click Save and close.
The second screenshot below will show you the last seven steps. For more details, go through this article: https://community.intuit.com/articles/1790429.
The International version currently doesn’t have a built-in payroll function. With this, you can manually record payroll transactions through a journal entry. To learn more about this process, check out this article: https://community.intuit.com/articles/1777191.
I want you to know that I’m here anytime you have other concerns. Wishing you and your business continued success with QuickBooks, Sahm.
I have the following followup questions
1. Can I create more than one Payroll Expense account like Staff1, Staff2 to keep track of how much I paid each staff.
2. Do I have to use the Payroll Expense account with Detail Type as Office/general administrative expenses or I can use an Expense account with Detail Type as Payroll expenses because the description of the later looks more appropriate for monthly salaries.
3. Why in Reports when I view the Accounts List, the Assets and Liabilities accounts show Balance but the Income and Expenses accounts don't?
Many thanks once again
Yes, you can create more than one payroll expense accounts. Second, you can choose the Payroll Expenses as the detail type since it's more appropriate for monthly salaries. This is used to track the wages of your officers, workers compensation, and payroll taxes.
Third, the Assets, Liabilities, and Owner's Equity accounts carry opening balances while the income and expenses don't have. This is the reason the balance sheet accounts display balances on your Accounts List report. For more details about this, go through this article: <a rel="nofollow" target="_blank" href="https://community.intuit.com/articles/1776839">https://community.intuit.com/articles/1776839</a>.
I'll be right here to help if you need further assistance.