Hi - we use Quickbooks Pro. I am new to the company and not familiar at the expert level with Quickbooks. Our company policy requires an accrual of earned personal time over the course of an employees time with the company, in accordance with ASC 710-10-25-1. We need to properly report respective expense and accrual of in liability. 1) Is this possible at all in Quickbooks, besides managing this with general journal entries? I cannot get a straight answer on this from any. Quickbooks does track hours, which is fine, but it isn't sufficient for financial reporting. 2) I prefer to defer from having to do manual entries and would like to optimize automatically with our actual time tracking. I did find this article, which I thought may be helpful, but I am unsure. https://www.softwarediscountcenter.com/quickbooks-help/2010/05/27/quickbooks-payroll-tip-how-to-automatically-calculate-and-book-accrued-vacation-to-a-liability-account/ I'd love to hear from someone who has experienced this before. I am going to need to review our payroll system from the ground up I believe. Thanks.
QuickBooks and Vacation Time Accrual (generating expense and liability)
Answers
Wade,
Greetings!
I personally never had such situations before but here's what may help you!
The article that you found is helpful. Quickbooks does calculate the vacation pay and sick pay for your employees but not through Quickbooks Accounting software.
What application or software do you use to do your payroll? Generally, your payroll software will provide you with these kind of calculations and reports. If you are using quickbooks payroll, quickbooks can also record those expenses and liabilities. But, however if you are using some another software like Paychex/ADP and report the vacation or sick leaves while you do the payroll, you get the report from these payroll softwares which can be your supporting document to record those expense or liability.
Moroeover, the below mentioned article can help you!
https://community.intuit.com/articles/1436848
This is the article that shows, how you adjust the vacation pay or sick pay liability through different screens on Quickbooks payroll module.
Let me know, if this was helpful.