Accrued Payroll

Accrued payroll is a current liability comprised of four sections. The first section of accrued payroll is the amount of payroll earned by staff and not yet processed or paid. The second is the dollar value of personal time off accumulated for each employee aggregated into one number. The third part consists of payroll taxes owed to the respective governmental authorities and the final section comprises the accumulated benefits payable such as health insurance, retirement contributions, and amounts owed to third parties as deductions from the gross payroll.

Bookkeeping – Estimating Employee Benefits (Lesson 84)

Estimating Employee Benefits

Employee benefits consist of vacation, sick time, retirement benefits, healthcare and other de minimis benefits.  As a function of accrual accounting these benefits are estimated and posted as a deferred liability in the accrued payroll section of the current liabilities section of the balance sheet.  This lesson explains how to calculate the respective benefits and post this information to the books.

Bookkeeping – Complex Entries Expanded (Lesson 66)

Complex Entries

A journal entry with multiple lines of entry affecting several different ledgers (accounts) is commonly referred to as a complex entry.  Many bookkeepers shy away from them as they feel intimidated by the difficulty involved and do not want to make an error.  This lesson helps the bookkeeper understand how to break the complex entry down into a series of standard entries.

Payroll – Introduction to Basic Concepts

Payroll

Payroll is envisioned as the simple employer employee agreement related to compensation for services.  I often think of this as the simple handshake whereby the employer agrees to pay the employee a set rate per hour of work.  This was true a hundred or more years ago, but over time; history and governmental regulations complicated this simple relationship.

Accrued Payroll – An Explanation

Accrued Payroll

Accrued payroll is a current liability comprised of four sections.  The first is the amount of payroll earned by staff and not yet processed or paid.  The second is the dollar value of personal time off accumulated for each employee aggregated into one number.  The third consists of payroll taxes owed to the respective governmental authorities and the final section comprises the accumulated benefits payable such as health insurance, retirement contributions, and amounts owed to third parties as deductions from the gross payroll.

Create a File Structure for Accounting

File Structure for Accounting

Creating a file structure for accounting is critical for the overall success of the business.  If properly structured, data retrieval and information access add to the overall value of the company.  This article teaches the new business owner how to create a file structure to use with accounting.

The primary goal of creating a file structure is to make data retrieval easy and understandable by just about anyone involved in office operations.  Keep in mind that the end user is how the structure is developed.  From a simple format to a more complicated structure incorporating the entire office, the file structure should be organized in a systematic approach.  First, break down the accounting function into the respective areas of importance.  Next, subdivide these areas by accounting cycles.  Finally, incorporate the accounting software function and the overall office to end up with a well-organized file structure for the company.

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