How to record employee Salaries & Advances in Fast Accounts
If you want each employee ledger of payroll use this method. In this way you can record the payment of salary and advances during the month and keep full record.
- Set up each employee payroll Nominal in Chart of Account
- Add advance salary payment during the month to the employees
- Add payroll journal (you can also import or copy journal) Debit Wages & Salaries with total payroll Credit each employee payroll account with net salaries
- In nominal reports check how much is payable to each employee. This way you can also check any employee ledger as well.
- Make final balance payment to employees in bank payment section.
Every month follow the same process, for weekly employees this will be done on weekly basis. Once you have done wages journal or salary payment use copy journal or copy bank payment option next time, just update amounts and you will be done.
This will be quicker but will not give employee ledgers. This is suitable if there are no advance salaries and salaries are paid to all employees on fixed date.
- Add employee payroll journal
- In bank payment, add payroll payments to Payroll Payable.
- Make payment of salaries directly to wages account in profit and loss account, in this way these wages will be counted in profit and loss account when payment is made.