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T
TUSSU
November 3, 2023
Question

Problem with Balance Sheet

  • November 3, 2023
  • 1 reply
  • 0 views

Hi All,

I have having problems with my Balance Sheet. My data was imported from Sage about 2 years ago and I am convinced my problems are as a result of this import But I don't know how to fix it. My year is July 1st to June 30th.

A lot of entries in the Balance sheet only contain a beginning balance and I did not enter any beginning balances so this is what I am assuming happened at the time of the data transfer from Sage to QuickBooks. My question is how to safely deal with these items and remove them from the balance sheet. There are also entries for people's wages and tax but these people no longer work here, yet these entries are in my Balance sheet. Wages are done by creating a journal and inputting all of the wage information for all staff into that journal is this the best way to record wages? The journal is sent to a category called "Wages Expenses" and when the wages come into the bank the individual entries are also sent to the "Wages Expense" category, is this correct or is there duplication between the Journal and the individual entries? 

How do I correct all of this in my Balance sheet?

Best Regards,

Noel

1 reply

G
GeorgiaC
November 3, 2023

Hi Noel, thanks for posting on the Community

 

The opening balance is the starting point for accounts in QuickBooks. When migrating, the ending balance in your previous software will usually be entered via a journal for the opening balances in QB.

 

Our guide here shows how to enter and manage these balances. We recommend working alongside your bookkeeper or accountant to ensure the records are accurate.

 

Recording the wages to an expense account on the journal and on the individual bank entries would be duplicating the record.

 

In QuickBooks Online Payroll, the automated journal would credit the wages to a payroll PAYE liability account. and debit to a payroll wages expense account. 

 

Individual employee wages would then be recorded using an expense (+ New > Expense), with the payroll liability account selected in the Category field. Once saved, this reduced the amount owing in the liability account, and can be matched to the downloaded bank payment. 

T
TUSSUAuthor
November 3, 2023

HI,

thank you for your quick response, just so that I am a bit confused regarding the  recording of the wages

 "the automated journal would credit the wages to a payroll PAYE liability account. and debit to a payroll wages expense account." 

Question: is the PAYE Liability account automatically created by QB?  I am assuming the Wages expense account is the one i created called "Wages Expense"?

I record the individual wages as an Expense and categorise them in "Wages Expense" My undertanding is that categorising them to "Wages Expense" is the wrong category and it should be the PAYE Liability report, is this correct?

Best Regards,

Noel

G
GeorgiaC
November 3, 2023

Hi Noel, QuickBooks automatically creates a payroll liability account when the payroll is activated. We offer two different versions of payroll (Standard and Advanced) and the accounts used differ slightly for each. If you don't use the payroll module in QuickBooks, you won't have the default payroll accounts but you can create your own. 

 

You don't need to create a payroll liability account; however, if you're recording the wage expense on the journal, you would need to match this to the individual payments in your bank (create a separate line on the journal for each employee) instead of adding this as this would cause duplication. Hope this helps!

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