How do I record my employees’ salaries in Zoho Books?
You can record your employees’ salaries by creating an expense or a manual journal.
Record Employee Salary as an Expense
- Go to Purchases on the left sidebar and select Expenses.
- Click + New in the top right corner of the page.
- Select the Expense Account. For example,say Salaries and Employee Wages.
- Enter the other necessary details.
- Click Save.
Record Employee Salary as a Manual Journal
- Go to Accountant on the left sidebar and select Manual Journals.
- Click + New Journal in the top right corner of the page.
- Fill in the required details.
- Debit the expense account (Salaries and Employee Wages in this case) and credit the bank account from which salary is paid.
- If the employee’s salary contains components such as TDS, EPF, and ESI,you have to create individual accounts (in Chart of Accounts) for each component with account type as Other Current Liability.
- Click Save and Publish.
Insight: If you are looking for full-fledged software to maintain your employees’ salaries and wages, you can use Zoho Payroll.