Payroll Bookkeeping Support for Small Businesses
Dari & Associates helps U.S. small businesses keep payroll activity accurately reflected in their books. We coordinate payroll reports with the general ledger, record payroll-related activity, review payroll liabilities, and reconcile payroll transactions so wages, taxes, deductions, and employer costs are properly represented in your financial records.
We work alongside payroll platforms including ADP, Gusto, Paychex, SurePayroll, and QuickBooks Payroll while maintaining the bookkeeping records in QuickBooks Online and other supported accounting systems.
Payroll does not stop when employees get paid.
Every payroll run creates activity that eventually reaches the books. Employee wages, employer payroll taxes, benefits, deductions, reimbursements, and payroll withdrawals all need to be reflected correctly in the accounting records.
When payroll reports and the general ledger do not agree, payroll expense can be misstated, liability accounts can accumulate incorrect balances, and the financial statements become harder to rely on.
Our role is to help keep the payroll records and the books aligned.
What payroll bookkeeping support can include
Payroll Journal Entries
Payroll activity recorded accurately in the accounting system using information from the payroll provider.
Payroll Reconciliation
Payroll reports, bank withdrawals, and general-ledger activity reviewed to identify discrepancies.
Wage & Salary Recording
Employee wages and salaries categorized appropriately in the books.
Employer Payroll Tax Recording
Employer payroll tax expenses and related bookkeeping entries recorded from available payroll reports.
Payroll Liability Review
Payroll-related balance sheet accounts reviewed for unusual or outstanding balances.
Benefits & Deduction Recording
Payroll-related benefits, deductions, and other items recorded according to the available payroll reports and accounting setup.
Payroll Clearing Account Review
Payroll clearing or related accounts reviewed and reconciled where the client's bookkeeping structure uses them.
Payroll Report Organization
Relevant payroll reports maintained as supporting documentation for the bookkeeping records and month-end review.
QuickBooks Online Integration
Payroll activity coordinated with QuickBooks Online so payroll-related accounts remain consistent with the broader bookkeeping records.
Your payroll provider runs payroll. We help keep the books aligned.
Many small businesses already use a dedicated payroll platform to calculate paychecks, process direct deposits, manage employee information, and handle payroll tax filings.
Dari & Associates works with the accounting side of that process.
We use the reports and transaction data produced by your payroll provider to help ensure payroll activity is recorded properly in the books and reviewed as part of the monthly close.
Your payroll provider
- Calculates payroll
- Processes employee payments
- Handles provider-specific payroll filings and functions
- Produces payroll reports
Dari & Associates
- Records payroll activity in the books
- Reviews payroll-related general ledger accounts
- Reconciles payroll transactions
- Reviews payroll liabilities from a bookkeeping perspective
- Incorporates payroll into the monthly financial close
Payroll accounts should reconcile too.
Payroll can involve several transactions for a single pay period. Net pay, payroll taxes, benefits, deductions, and provider withdrawals may reach the bank account separately while the payroll report presents the complete payroll activity.
Simply categorizing the bank withdrawals as "Payroll Expense" can leave the books incomplete.
A structured payroll bookkeeping process uses the payroll reports to separate the appropriate expense and liability components and then reviews the resulting balances against the underlying activity.
This helps produce a cleaner profit and loss statement and a more reliable balance sheet.
Payroll platforms we work alongside
We can incorporate payroll information from the systems your business already uses into the bookkeeping workflow.
- ADP
- Gusto
- Paychex
- SurePayroll
- QuickBooks Payroll
Using another payroll system? We can review the available reports and determine whether it can be incorporated into the bookkeeping workflow.
How payroll bookkeeping support works
- 01
1. Review the Payroll Setup
We review your payroll platform, pay schedule, existing accounting setup, and how payroll activity currently reaches the books.
- 02
2. Review the Accounting Workflow
We identify the payroll reports, accounts, and transaction flow needed to maintain the bookkeeping records accurately.
- 03
3. Establish the Recording Method
We establish how payroll expenses, liabilities, deductions, and related transactions should be reflected in the accounting system based on the available payroll information.
- 04
4. Reconcile Payroll Activity
Payroll reports and related bookkeeping activity are reviewed as part of the recurring accounting process.
- 05
5. Include Payroll in Month-End Review
Payroll-related accounts are reviewed alongside bank accounts, credit cards, and other balance sheet accounts during the monthly close.
Payroll is one part of the monthly close.
Payroll bookkeeping works best when it is connected to the rest of the accounting records. Bank reconciliations, payroll liabilities, operating expenses, accounts payable and receivable, and other balance sheet accounts all contribute to accurate monthly financial statements.
For businesses that want ongoing support across the books, Dari & Associates provides monthly bookkeeping services with recurring reconciliation and financial reporting.
Payroll balances already look wrong?
Historical payroll entries can leave incorrect balances in payroll liabilities, clearing accounts, wage expense, or other payroll-related accounts.
If those issues come from prior bookkeeping periods, the books may need to be reviewed and corrected before a recurring payroll bookkeeping workflow is established. A QuickBooks cleanup addresses incorrect historical records, and catch-up bookkeeping brings missing periods current.
Questions about payroll bookkeeping support
- Do you process payroll?
- Dari & Associates primarily provides payroll bookkeeping support and works alongside your existing payroll provider. The exact scope depends on your payroll platform and the agreed engagement, and full payroll processing is not part of our standard service.
- Which payroll platforms do you work with?
- We regularly work alongside ADP, Gusto, Paychex, SurePayroll, and QuickBooks Payroll. Other payroll systems can often be incorporated when they produce suitable payroll reports.
- What is payroll reconciliation?
- Payroll reconciliation compares payroll reports with the related accounting activity to help identify discrepancies between the payroll system, bank activity, and the general ledger.
- Do you file payroll tax returns?
- Payroll tax filing is generally handled through your payroll provider or tax professional. Dari & Associates focuses on the bookkeeping and accounting records related to payroll.
- Can you clean up old payroll liabilities in QuickBooks?
- Payroll-related balances can be reviewed as part of a QuickBooks cleanup, depending on the records available and the source of the discrepancy.
- Can payroll support be included with monthly bookkeeping?
- Yes. Payroll activity can be recorded and reconciled as part of ongoing monthly bookkeeping, so payroll expenses and liabilities are reviewed alongside the rest of the books during each monthly close.
- Do you provide HR advice or employee classification advice?
- No. Dari & Associates provides bookkeeping support and does not provide legal or HR advice. Questions involving employment law, worker classification, or HR compliance should be addressed with the appropriate professional.
- Can you work with our existing payroll provider?
- Yes. That is our normal approach. We use the payroll reports and transaction information your provider produces to maintain accurate bookkeeping records.
Keep payroll and the books working together.
If payroll is running but the accounting records are difficult to reconcile, we can review your current setup and determine how payroll bookkeeping support can fit into your monthly workflow.