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siggm1901
October 3, 2021
Question

Need advice on fixing payroll timing issue...

  • October 3, 2021
  • 1 reply
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I am trying to correct/redo the company file for a subordinate of our organization.  They use a third party payroll company that withdraws the net pay and taxes amount from their bank account the day before the payday.  Since the payday is the first of the month, the money is withdrawn on the last day of the prior month.  I am tasked with recreating the payroll run in QB, which is easy enough.  However, all of the payroll expenses in QB show up, for example, on July 1(the payday).  The payroll company withdrew the money on June 30.  The July 1 payroll is for the month of July(salary paid in advance), so I need to keep the July1 check date.  I'm not sure if the reconciliation could be done correctly since the payroll is dated July 1 in QB but the money left the bank account on June 30.  Could a reversing journal entry be used to correct this timing issue in QB?  Thank you for any advice you have.

1 reply

MJoy_D
MJoy_D
October 3, 2021

I can help you with reconciling your accounts, @siggm1901.

 

You can exclude those transactions that have been downloaded from the bank, so you can reconcile payroll runs that you have manually added.

 

Here's how you can delete or exclude your bank entry:

 

  1. Go to the Banking tab, hover to Bank Feeds, and select Bank Feeds Center.
  2. In the Items Reviewed section, select the name of the account with the transactions you wish to remove.
  3. Select your preferred bank account.
  4. Click the Transaction List.
  5. Locate the transaction and select Ignore from the drop-down menu under the ACTION column. 

 

Once you're done, you can now proceed and reconcile your accounts. Utilize this article for reference in reconciling your accounts: Reconcile an account in QuickBooks Desktop.

 

Reversing a journal entry in QuickBooks Desktop will create a new entry, dated the first day of the next month, which reverses the debit and credit amounts. I suggest reaching an accountant for detailed guidance about this. 

 

You can follow the steps below:

 

  1. Go to the Journal entry that you've added.
  2. On the Main tab at the top of the window, click Reverse.
  3. Select Yes to confirm that you want to save your changes on the window that appears. 

 

In case you run into some issues when reconciling your accounts, you can refer to this link on how to fix it: Fix issues when you're reconciling in QuickBooks Desktop.

 

You're always welcome to get back to this thread if you have follow-up questions in reconciling your accounts. Have a good one and keep safe!

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