How to enter payroll into the checking account and GL

Author: Steve Childs Reference Number: AA-02223 Created: 2015-01-22 14:01 Last Updated: 2015-01-22 14:01

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(One time only) Create a suspense (Asset) account in your Chart of Accounts for transfers.
Go to the banking tab and click Adjustments. (Note: Use this option if you have the money automatically coming out of your checking account).
Click the new button in the lower left hand corner.
Select the bank account from the drop down list in the upper right hand corner that you wish to withdraw the money from.
Select the adjustment type on the top of the form (Typically Wire Transfer).
Fill in the amount you wish to withdraw in the Amount Withdrawn field. Then fill in the Suspense account created earlier as the Debit account.
Go to the banking tab and click checkwriter. (Note: Use this option if you will be manually writing a check to give to your payroll company).
Select the bank account from the drop down list in the upper right hand corner that you wish to issue the check out of.
Create the check making sure to debit the suspense account you entered earlier in the GL accounts area.
Now go the accounting menu and click the make journal entry.
Enter the date of the transaction matching the date of your adjustment or check in the upper right hand corner.
Then enter the suspense account in the account number field and enter the total amount of the adjustment or check in the Credit field.
Once you have cleared out the suspense account you can then enter your payroll figures crediting payroll and debiting all your liability accounts.