Advertise here    

QuickBooks Forums      

Go Back   QuickBooks Forums > QuickBooks Software Support > QuickBooks Pro Forum

Reply
 
Thread Tools Rating: Thread Rating: 2 votes, 5.00 average. Display Modes
  #1  
Old 03-12-2002, 03:19 PM
butterp1998 butterp1998 is offline
Junior Member
 
Join Date: Mar 2002
Location: Maryland
Posts: 8
Unhappy Accrual of Salary Expense

I expected QuickBooks to be a fully accrual compliant software system. It appears that accrual reporting is possible for A/P and A/R, but not for payroll expenses. For payroll QB appears to do cash basis reporting only.

We're a service firm and the bulk of our expenes are employee salary. At the end of any period we have a substantial amount of salary liability until paychecks are issued a few days later. We use timesheets and have entered the hours worked through period end. Payroll is generated from time data, but until the paycheck date I can find no way to a) report the accrued salary expense, and b) show the accrued salary liability on the balance sheet. This seems to be true even if the paychecks have been created but the paycheck date hasn't arrived.

Does anyone know how to perform the basic GAAP reporting in QB? I'm using QB Premier 2002.
Reply With Quote
  #2  
Old 03-12-2002, 04:37 PM
Joey Joey is offline
Registered User
 
Join Date: Jan 2002
Location: South Florida
Posts: 6,258
Quickbooks is designed for small business financial accounting and only accrues the A/R and A/P as you stated. It does accrue the payroll liabilities as the paychecks are created also but it won't do full GAAP accruals.
__________________
Joey
www.casdelraybeach.com
Certified Pro Advisor
Reply With Quote
  #3  
Old 03-13-2002, 03:53 AM
gibbo gibbo is offline
Registered User
 
Join Date: Oct 2001
Location: Australia
Posts: 1,597
I am not sure if what I am about to suggest is exactly what you need, but it might get you thinking.
Create a "Dummy" bank account. Call it Payroll or something. Create the Payroll Liability Accounts you need. Now each week when you enter the wages, write a cheque for a Nil amount in the "Payroll" Bank account. Post the wages as POSITIVE figures to the expense account and the same total amount as NEGATIVE figures to the Liability accounts.

Now the wages show as expenses as they occur, but no payments made. When you write the cheques to the staff (from your real Bank Account), post against the Liability account. The same for paying the other withheld amounts.

If you do not know the breakdown of the withheld amounts at original posting of the wages, just throw into one Liability account. Then use a similar in - out structure on the payment cheque to take it from the generic account into the correct liability accounts.

Hope this helps.
Reply With Quote
Reply

Bookmarks
Bookmark and Share
Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is On

Forum Jump


All times are GMT -5. The time now is 05:08 PM.


 

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
All contents copyright (c) by AccountingUsers Inc.
You Rated this Thread: