For many small businesses, tracking and reporting payroll becomes a bi-weekly nuisance. Outside payroll processing companies remove the pressure of making deposits and filing timely returns, but employers are still left with the task of recording the transaction in their accounting system. But this frustration can be eliminated as well! Programs used by outside payroll providers can bridge with accounting software so that payroll information can be imported directly.
The process is pretty simple: each item of an employer’s payroll is associated with a general ledger account. Classes and sub-accounts can be utilized to track salaries for different departments within a business. The payroll company will generate an import file and provide it along with the reports for that payperiod. After a few clicks of the mouse, the journal entry is imported, allowing the office manager to focus on other revenue-generating tasks.
It may take a few tries to get the import file exactly right and the journal entry may still require a small tweak here or there, but the overall time savings make it worth the effort. Time spent recording payroll entries can be reduced from a few hours to less than a minute, and monthly reconciling activities become less tedious as well.
If you’ve come to dread your payroll routine, consider working with our HR Payroll System, PoweredUp Consulting to set up import files. It’s a great opportunity to replace a headache with increased efficiency.