There are 4 steps to set up payroll for your employees:
1. Set up payroll items used to compensate your employees, such as salary, hourly wages, vacation pay, bonus, commission, advance, WCB, etc.
2. Set up employees for their compensation.
3. Enter historical or year-to-date data for your employees, including benefits and taxes withheld, such as CPP, EI, and income taxes.
4. Run a payroll – paying your employees.
The first payroll task, setting up payroll items, will be discussed here. This task is to tell QuickBooks how you are going to compensate for your employees. By default, QuickBooks create the Payroll Liabilities and Payroll Expenses into your chart of accounts when you enable Payroll. You can create their sub-accounts to track individual payroll liabilities and expenses, which make tracking them much easier.
From the Main Menu, select Lists > Payroll Item List to open payroll Item List window:
If you sell products or services to a lot of customers with the same quantity, items, and price, you will find batch invoicing is very helpful. For example, you sell black iPad over and over again, or your consulting company always bills the same service regularly.
Instead of creating each invoice one by one, you can set a batch invoicing to send the same invoices to many of your customers. Batch invoicing uses individual customer information (sales tax, terms, and send method) to create invoices. Make sure your customers records have necessary information you intend to use in the customer's Additional Info tab.
Note that this feature is not available when you multi currency preference is enabled.
Let’s create a batch invoices:
A statement charge is a charge to your customers that you don’t create an invoice, unlike a finance charge. Example of a statement charge are cost of producing a statements itself or other overhead expenses.
In order to appear in the statements, you have to enter statement charges before generating statements. To create a statement charge, you can use the following items in your Item List:
• Service items,
• Inventory part items,
• Non-inventory part items, or
• Other Charge items.
But you cannot use any of these items:
• Sales tax items,
• Percentage discount items,
• Subtotal items,
• Payment items, and
• Group items.
To create a statement charge, you have to go to your customers or jobs Account Receivable registers directly by:
1. Selecting Customers > Enter Statement Charges from the Main Menu, or
2. Clicking Statement Charges icon of the Customers pane from Home Page.
If your business has inventory items, you then have to count their physical inventory periodically to ensure your QuickBooks inventories match your warehouse inventories. Many things can happened in the warehouse – theft, damage, obselete, or other reasons that make your inventories unsalable, which leads to quantity discrepancy.
You can adjust quantity, value, and both quantity & value in QuickBooks by selecting Vendors > Inventory Activities > Adjust Quantity/Value on Hand to open Adjust Quantity/Value on Hand window:
One way to make sure that your customers pay in due time is to impose finance charges. This is to compensate all the hard works you have done in trying to get the overdue amounts.
In order to appear in your customer's statements, you have to apply this finance charges before generating statements.
First of all, you have to configure the finance charge in your preferences by selecting Company Preferences in Edit > Preferences > Finance Charge icon: