New user - QB2005 Pro.
We pay monthly. The calculation is made based on hours in the month, but the checks are cut in the first business day of the following month. How can we treat the acrued payroll as a "bill", so the wages are tied to the period in which they accrued, and then use the check to pay it?
Record a journal entry at the end of the month and reverse it on the first day of the next month. Consult with your accountant how this should be done.
General Journal Entry on the last day, debit payroll expense and credit accrued liabilities; reverse the entry the following day.
month, but
Cut the checks on the first day of the month BUT set the check date as the last day of the previous month. Should work. You could even cut the checks on the last day of the month and lock them in the drawer until the next day.
From an accounting standpoint it does not.
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