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Small Biz Accounting Tips, Issue #003 -- May 2013
May 14, 2013
|Hello small business owners!
The theme this month is payroll.
A lot of small biz owners are trying to calculate their own payroll to save some money. And if you just have a few employees it certainly is doable.
Just remember that no matter who does your payroll processing, you are ultimately responsible for paying all the taxes. So make sure you understand that, and if you've hired a service, make sure you understand who is doing what.
In this months newsletter I've got some journal entry help for payroll entries, we'll talk about making your tax payments timely, discuss how to calulate payroll, and, and I've got a couple gadget/products that you may find useful.
Accounting Journal EntriesPayroll Entries:
When you calculate payroll, you have gross wages, then all your tax deductions, then any personal deductions of the employee (like child support, 401k payments, savings deductions, etc), then you have net pay, which is the amount of the paycheck.
You may write your payroll checks out, and separate the deductions on the checkstub. If you're using a computer software package, the software makes the entry for you automatically. But, if you're using a manual accounting system, you have to make the entry in your
Cash Disbursements Journal,
so how would you do that?
Gross Wages $2500
That's how you would make a payroll entry in a Cash Disbursements Journal.
Calculating PayrollSo how do you actually calculate payroll?
You can have hourly or salaried workers, and you may have overtime, too.
You must first multiply the hours worked by the hourly wage for Gross Wages.
Then you have to calculate the taxes, and any other deductions to get your Net Pay.
For the rest of this article, click here.
Helpful Gadget / Product for your small biz
Deluxe Checks has been around a long time, and you can order hand checks, computer checks, deposit slips, invoice forms, purchase order forms, and more specific to your industry.
And right now they're having a sale for new customers - half off!
I now have Small Business Training Manuals available for my readers, and the first one - available now - is How to Read and Understand Your Financial Statements. It's a valuable resource for small biz owners with no prior knowledge about financial statements, with real small biz examples and plenty of plain talk and useful insights from my 20 years in the business.
Well, that's it for this month.
I'll be back next month with more tips and help for your small business bookkeeping.
PS: Please feel free to let your fellow small biz owners know about this newsletter! Send them to my sign up page - the last button on my navigation panel.
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