QuickBooks Payroll just got better. We’re now able to post leave liability balances to the general ledger in QuickBooks Online when posting the regular payroll.
Many businesses using an accrual based accounting system need to know at any time the balance of their leave liabilities. In English, this means knowing how much you owe to your employees at any given time for accrued leave should you need to pay them out on termination. Some examples of types of leave liabilities are annual leave, time in lieu and long service leave.
Whilst you’ve always been able to report the other payroll liability balances like Superannuation and PAYG tax in QuickBooks, you will now be able to report the balances owing for leave owing. Even better, you can now export this information to QuickBooks when posting your regular payroll once Keypay has been configured correctly.
At the end of the day, this information in your balance sheet gives you a more accurate picture of the financial situation of your business and how much you should be provisioning for payroll liabilities in the event of employee termination.
In order to automate the process, configuration must be done within your chart of accounts to map leave liability and expense general ledger accounts. Once mapped, your regular payroll journals will include the associated costs of any leave liabilities on a per pay run basis.
For more information on setting up automated posting please click here.
Alternatively, if you need more information or assistance setting this up, please contact us.