Quicken & Other Budget/Accounting Software/Bonus



Staff bonus for 2014 will be paid in January 2015. What is the entries to reflect the bonus in 2014 a/c instead of in 2015 accounts?

If you already have an account called "accrued wages payable" (liability account)
use that account.  Bonus Payroll does not need a separate liability account.
I do recommend that accrued wage expense be a separate expense chart of account
rather than posting an accrual to normal wage expense. That way if the tax preparer
is looking to tie out wages to any reporting year end forms, the accrual entry
is not affecting that reconciliation.

To post the accrual create a JE
Debit  Wages Exp - Accrued (expense account)
Credit   Accrued Wages Payable (liability)

Memo - To accrue 2014 bonuses paid in January 2015.

You will reverse the journal entry on the date the bonus checks
are issued.  
That reversing entry is a copy of the original except you
switch the debit and credit

Create a JE

Debit  Accrued Wages Payable (liability)
Credit   Wages Exp - Accrued (expense account)

Memo - To reverse accrue 2014 bonuses paid in January 2015.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
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Linda Saltz, CPA, QBalance.com


QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com


Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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