Payroll Journal Entries in QuickBooks Online by Lend A Hand Accounting

Our process is to create bill and journal entries in QuickBooks Online for employee payroll that was processed via a third-party application such as Gusto, ADP or Paychex. Your accountant will make sure that your Payroll Chart of Accounts aligns with the reports from your third-party payroll provider. Each pay period, you accountant will send you a notification requesting the necessary reports from your third-party payroll provider to create journal and bill entries for your employee payroll liabilities and expenses in your QBO account. The reports can be uploaded into a folder within your secure document upload portal. This service will enable you to run summary payroll reports in QBO that include your payroll expenses and liabilities. We take the guesswork out of the process of recording your payroll expenses and liabilities in QBO from third-party apps.

Your Accountant Matches Net Payroll & Tax Payment Amounts

Even if you have not selected our monthly Bank Feed Categorization service, your accountant will match the amounts that come into your bank feed to the bill entries they created in your QuickBooks Online account. This is a best practice as the amount you owe to your employees in Net Pay and the amount you owe to the IRS for Employee Federal Income Taxes, Social Security Taxes and Medicare Taxes will remain open until the payments come into your bank feed and are matched to the original bill entries made by your accountant. This is our checks and balances system to ensure that your payroll tax liability payments have been received by the IRS. One of the most common errors that we correct for clients in QBO is the incorrect recording of payroll expenses and tax liabilities. Once this bill and journal entries are complete, your accountant will prepare and upload a Payroll Report into the From My Accountant folder located within your document upload portal. Your accountant will also keep your payroll expense and liability accounts reconciled.