Salaries paid from personal account instead of company acct

Hi Zach2021 

 

Thanks for your post. When a pay is processed the net amount is credited to the bank account and the gross amount is debited to the Salary and wages expense account. If you record a Spend money transaction allocated to the Salary and wages expense account, the bank account is credited and the expense account is debited. Effectively duplicating the withdrawal in the bank account and incorrectly increasing the expense account by the net amount.

 

In your situation:

• in AccountRight you've got the pay transactions as a withdrawal from the bank account
• in bank feeds/bank statement you've got the withdrawal from the bank account when the amount was transferred to the personal account

This means that AccountRight and the bank statement have a matching withdrawal for the net amount.

 

So to reconcile you will need to delete the transaction recorded for the transfer to the personal account. You can then manually reconcile the pay transactions by hiding the bank feed transaction and in the Reconcile accounts window tick the pay transactions. 

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.