Payroll Journal Entry for QuickBooks Desktop
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For ASAP Payroll clients that do not subscribe to one of ASAP's accounting packages, you may follow the below examples to help you record your payroll transactions back into your desktop version of QuickBooks.
The most common way to enter payroll into QuickBooks is via a general Journal Entry. To help streamline this process;
-First set up a "Memorized Transaction" in QuickBooks. Here is a step by step guide for how to create a simple memorized transaction for payroll.
-Next follow this step by step guide which will show you how to Enter a Payroll using the memorized transaction you just created.
Custom Import File
All payroll clients have the option of receiving a customized GL Report and/or .Iif file that is mirrored/matched directly with their Chart of Accounts. This custom file can be imported directly into a desktop version of QuickBooks. To get started, please share a sample journal entry and/or a copy of your chart of account with your account manager. You will not have to sit coding fields and mapping lines of entries; our experienced staff will work with your accounting team to format the report to suit your needs for import. If you do not use QuickBooks, we can export files to match a number of other accounting software. Contact us directly to set up your custom report.
Net Vs. Gross Payroll - Keep in mind, it is key to understand the different between gross and net payroll. Gross payroll is the total amount you pay your employees BEFORE deductions. Net payroll is what you pay your employees AFTER deductions. This can be a mixture of payroll expenses and liabilities such as taxes, health benefits, 401(k) contributions, etc.
Accounting Method; cash basis or accrual basis - Consult with your accountant on how you should be entering and dating your payroll entry. For example, if you use an Accrual Based accounting practices you would date your payroll entry on the pay period end date. Whereas if you use a Cash Based you would date your payroll entry as the check date.