Changes to Xero Payroll
Aug 30, 2014
Since Xero released their Australian payroll we have had to deal with the manual process of creating a draft bill to update the general ledger with payroll information. This introduces costly mistakes and makes the process confusing and overly manual. So they have fixed it!
From the 18th of August 2014, transactions from payroll will seamlessly flow through to and impact the general ledger immediately – the way it should be with payroll transactions represented as journals. This impacts the Profit & Loss and Balance Sheet, reflecting the impact of the approved payroll immediately.
They have added a new Wages Payable Account field within payroll settings to record the net wages payable amount of each pay run within the journal. This provides you the benefit of keeping your wages payable transactions separate from accounts payable.
Another frequently requested feature is the payroll expense journal. It contains the same transaction information you’re used to seeing within the draft bill. The net wages are not recorded against Accounts Payable but the new Wages Payable account. Reconciling your net wages will now require you to allocate the spent transaction to your wages payable account, instead of a payroll bill.
Tropical Business Solutions is a Xero Partner, and well versed in how the product operates; and the update road map laid out by the company. If you'd like training or outsourced payroll solutions, please give us a call on 08 8922 0000.
Tropical Business Solutions
Director at Tropical Business Solutions.