Every bookkeeper needs to understand how to process a payroll. This is one of the many regular tasks in the bookkeeping cycle. In this lesson I’m going to illustrate a payroll structure as it pertains to the chart of accounts.
Month: January 2017
Job descriptions act as the framework for the relationship between the employer and employee. It is the starting point for the human resources officer in addressing proper matching of needs and resources. If properly written, the description acts as reference material for recruiting the best candidate, gauges job performance, identifies the career path and reduces risk of discrimination and unfair labor practices.
The bookkeeping cycle is like a huge giant clock with several dozen gears from a multiple cog gear rotating the most frequently turning cog cascading into the one large gear that once turned changes the timer one year forward. The bookkeeper’s job is to make all the gears click and keep the system lubricated. At the end of the year, hopefully the final gear moves one click on time and the process starts all over.
There really is no undergraduate degree program for bookkeeping. Nobody has a college diploma from an accredited institution for bookkeeping; accounting yes, bookkeeping no. There are some programs in community colleges. They teach basic accounting principles, dual entry, payroll and lightly touch on the chart of accounts.
In accounting there are books (journals) and ledgers for source entry of information. A trial balance is used to monitor the types of accounts. With the use of parent-child accounts and control accounts bookkeepers can generate a wide array of reports. Unfortunately this still lacks the breath of supporting information needed. The profession uses schedules to augment the reports.