Our process is to create journal entries in QuickBooks Online for employee payroll that was processed via your third-party payroll provider 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. Your accountant must be given access to download the required payroll detail reports within your third-party payroll system for the purpose of creating a summary level monthly payroll journal entry in your QuickBooks Online books that records your expenses and employee payroll tax liability clearing. We love to take the guesswork out of the process of recording your payroll expenses and liabilities in QuickBooks Online from third-party apps.

Your Accountant Utilizes a Payroll Liability Clearing Account

Your accountant uses a payroll clearing account on the Balance Sheet to accurately record the gross wages and employer payroll taxes on the Profit and Loss report, while also recording the payroll tax liabilities, as well as other liabilities for deductions from employee’s paychecks on the Balance Sheet. The accountant additionally clears those payroll liabilities when they are paid with vendor bills payments or expense entry recording when those outgoing expenses come through the connected bank feeds. The accountant will create custom accounts within the chart of accounts list to subtotal various payroll expenses and liabilities. There are many potential categories for payroll expenses and liabilities, such as health and retirement contributions and deductions, child support garnishments, and employee advances and reimbursements. Your accountant may also create custom classes as department and locations to provide more meaning payroll reports for your business.

Regina Pitts
Regina PittsChief Financial Officer
Member of the QuickBooks ProAdvisor Program

Your Personal Guide to Seamless Accounting: Advanced QuickBooks ProAdvisor at Your Service

Hey there! I’m Gina, and I’m the proud co-founder of Lend A Hand Accounting. Why did I start this? Well, I believe that everyone should have access to affordable, efficient, and flexible accounting and bookkeeping services. It’s all about making sure these essential services fit snugly into your budget without any fuss.

We’ve ditched the traditional hourly rate system and adopted a flat fee pricing. You might be wondering, “Why does this matter?” Well, this way, you know exactly what you’re paying for upfront and there are no unexpected surprises. You get to pick and choose the accounting services you need, like a customized menu. And the best part? You’re in complete control of when you start or stop using our services. We’re essentially just a call or a text away, no need for endless phone calls or draining trips to the accountant’s office.

I’m not just any accountant though. I’m an Advanced QuickBooks Online ProAdvisor. That means I’m equipped with advanced expertise and resources to help you leverage QuickBooks Online to its full potential. My goal is to make your accounting process smooth and efficient so you can focus on what you do best – running your business.

Ready to get started? Reach out to me directly at 360-637-4799. We can even kick things off immediately if you’re ready. Simply create a free account, and I can instantly take a look at your books and let you know where you stand.

At the end of the day, we’re here to serve you. We really appreciate the trust you place in us and we’re eager to meet all of your accounting and bookkeeping needs. Looking forward to being part of your team!

Take care,


The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.