It pays to reconcile your payroll now
We know how busy the EOFY can be for accountants and bookkeepers. So it pays to do a little groundwork now so that you’re not chasing your tail in the lead up to 30 June.
A good place to start is to reconcile your payroll data to your General Ledger. To do that:
- run a Payroll Activity Summary Report
- then reconcile it with your General Ledger transactions
If the numbers aren’t matching, it’s time to make amends. Here are two common mistakes and ways to fix them:
- Problem: Payroll is higher than what’s showing in the General Ledger.
- That could mean: A draft bill hasn’t been created for all your pay runs.
- Fix: You first have to identify any pay runs that need a draft bill, then go ahead and create them. Find out how.
- Problem: The General Ledger is higher than what is showing in Payroll.
- That could mean: Multiple draft bills have been created, or other transactions have been coded to the payroll accounts.
- Fix: Delete or void an invoice or credit note. Find out how.
With these fixes sorted, now it’s time to run the same report and reconcile. If your Payroll and General Ledger are in synch, you can be assured your EOFY workload will be a breeze.
Article provided by Xero