In a previous blog I talked about setting up customized payroll in QuickBooks. At that time I mentioned that in order to complete the process, it was necessary to set up the necessary Payroll Items. QuickBooks uses Items to control how transactions are recorded in the Chart of Accounts, but Payroll Items are a separate menu item under the Lists menu.
The purpose of this blog will not be to discuss the details in setting up Payroll Items. It will be to simply outline this feature of the software.
Setting up a Payroll Item is a two-step process. First, the Item must be created in QuickBooks, and second, the Item must be customized so transactions using it are directed to the correct account in the Chart of Accounts.
There are six types of Payroll Items using the EZ Setup feature:
Compensation (such as wages, salaries, bonuses, and commissions)
Insurance Benefits Deductions (such as health, dental & vision insurance, and HSA deductions)
When it comes to processing payroll for a small business, QuickBooks Payroll provides a very powerful tool. However, setting up payroll in QuickBooks can be a daunting task because the default process is totally inadequate for many businesses, especially corporations and partnerships.
By default QuickBooks only provides a couple of accounts for tracking payroll activity such as
Payroll Expenses and Payroll Liabilities. But any payroll professional will tell you that tracking payroll and payroll taxes is much more complicated than that. Therefore, QuickBooks Payroll is best used if it is manually set up by the user or a qualified professional.
The first step in manually setting up QB Payroll is to add the necessary accounts to the
Chart of Accounts. Accounts must be added in two locations: expenses and current liabilities.
Expenses in payroll include salaries and wages paid to employees and payroll taxes.
Salaries and wages may have to be broken...
With the current struggling economic conditions, the collection of accounts receivable is becoming more and more challenge each day. Strengthening your collection procedures may allow you to shorten the aging days of your accounts receivable and improve collection rates.
The following suggestions can help your business tighten up its credit and collections policies and improve its cash flow. Although some of the tips discussed here may not be suitable for every business, they can serve as general guidelines to help improve cash flow.
Define Your Policy. It's important to have a clear credit policy. Your sales force should not be able to sell to customers who are not credit-worthy, or who have become delinquent. Define and stick to concrete credit guidelines. You should also clearly delineate what leeway salespeople have to vary from these guidelines in attempting to attract customers.
Tip: A system of controls for checking out a potential customer's credit...
It is important to have someone that is trained and certified in the day to day procedures, management, direction, and processing of payroll. A common misconception is payroll consist of only printing checks.
Maybe, you are asking yourself what is evolved in payroll?
Find A System Monitor
First, you have to find a system to monitor and track the time of your employees. You have to decide if that system will be electronic or manual. You know manual...you still enter your time into a printed timesheet. A more accurate choice would be electronic processing. Electronic processing involves the use of a time clock or a kiosk machine, and your employees can log in and out to track time.
Gather All Time Cards And/Or Electronic Entries
Second, gather all time cards or electronic entries and forward to manager, ect to verify the hours reported by the employee is correct. You will have to make corrections and changes...