Balabook Payroll Bookkeeping Process:
Approval of Payroll Run:
After processing and approving a payroll run in Balabook, the system generates the necessary journal entries to record payroll expenses and liabilities. These entries typically include:
- Debit: Payroll Expense accounts (e.g., Gross Salaries, Employer Taxes).
- Credit: Payroll Liabilities accounts (e.g., Employee Taxes Payable, Social Insurance Payable).
These journal entries reflect the company's obligations and are recorded in the general ledger.
Manual Entry of Payroll Journal Entries:
In Balabook, payroll journal entries are manually created to ensure accurate financial reporting. This manual process allows for customization and ensures that all payroll-related expenses and liabilities are properly accounted for.
Payment of Employees:
When payments are made to employees, Balabook records these transactions to reduce the payroll liabilities. The entries typically include:
- Debit: Payroll Liabilities accounts (e.g., Employee Taxes Payable).
- Credit: Bank Account.
