to frequently-asked questions about accounting for payroll
with Clients & Profits.
Q. Why doesn't Clients & Profits handle
Creating a full service payroll module for Clients & Profits X is outside of the company's mission. Such a module would deserve the full attention of a development team or of a software company in general. To better utilize our resources in developing an outstanding agency management program, we decided to interface with CheckMark Software's Payroll
program, to import their payroll accounting data into C&P. Both company's can then focus on their individual strengths, doing what they do best. One reason we chose CheckMark Payroll is that it works on both the Macintosh and Windows operating systems. We wanted to make sure the needs of an all-Mac shop were addressed, though this is less of an issue with Intel Macs that can boot into Windows.
Q. So how do I get payroll into Clients & Profits?
If you use CheckMark Payroll to calculate and print payroll checks, then
Clients & Profits can import payroll data (which just imports an unposted detailed journal entry). Or you can manually enter a journal
entry into the general ledger for each payroll run, which is what is done when outsourcing your payroll.
Q. What exactly does Clients & Profits do with payroll?
Clients & Profits does not calculate payroll or print pay checks.
Rather, you will enter a standard journal entry into the general ledger to account for the payroll. Journal entries show up on the financial statements as well
as in the bank reconciliation. Payroll journal entries can be either
entered manually or imported from CheckMark Payroll.
Q. How do other agencies handle payroll?
Most agencies use an outside payroll service, such as Paychex or ADP,
then make a journal entry for the payroll amounts into the general
ledger. Some smaller shops run payroll in-house using a payroll program
like CheckMark, then import the journal entries after each check run.
Payroll is an easy task to out source, so it's worth considering. Payroll services are much faster
and probably more accurate than in-house payroll, especially since
payroll tax laws frequently change.
Q. Do the hours from time cards and time sheets roll up into payroll?
No. Time cards and time sheets are used exclusively for job costing. Billable time will also increase the unbilled amount on job tickets often used to determine what amount to bill a client. Time has no direct impact on the general ledger.
Your staffers enter their hours based on what should be billed, which may not always be a true reflection of their total work hours. This applies to an hourly employee entering time in Clients & Profits, where their billable time entered in C&P most likely will not reflect their total work time (for which they receive a pay check).
However, some agencies create an "in-house" client (setting on the client record), then create a job for this client against which hourly staff enter their hours each day (vs. buying a time clock to punch in and punch out). Their hours can then be printed and forwarded to whomever does payroll to generate their pay check.
Q. Can I add my employees as vendors, then write them payroll checks
in the Checkbook?
It's not recommended. The checks printed from Clients & Profits use an Accounts Payable
type of check stock which has columns for invoice, date, discount, and
payment amount. The printed check doesn't support payroll information,
such as year-to-date earnings, taxes withheld, employee contributions,
etc. Employees need authentic payroll checks which can only be printed
from a payroll program like CheckMark.
Q. We use an outside payroll service. How should I enter the payroll
summary as a journal entry so that each check is broken out as a
separate line item on my bank reconciliation?
You can enter the journal entry in one of two ways: (1) Enter a separate
journal entry for the net amount of each check. Use the check number
in the reference number; or (2) because each credit to cash is displayed
as a separate line item on the bank reconciliation, enter the payroll
summary as a single journal entry with the net amount of each check
listed as a separate credit to cash. To enter a check number for each
credit-to-cash entry, save the journal entry, then double-click on
each credit-to-cash line item and enter the respective check number
in the description. On the bank reconciliation, the beginning of the description appears, so each credit to cash can be identified
and cleared by check number.
Q. How do I import CheckMark payroll entries into Clients & Profits?
A detailed description can be found on the importing payroll
user guide page.
Q. Will Clients & Profits import accounting entries from other payroll
Yes, as long as those programs share the same data file format for their
exported entries. You'll follow the same instructions for importing
CheckMark entries for your payroll program.
Q. Can I use my Clients & Profits checks with CheckMark?
No. CheckMark uses specially-designed payroll checks. They look different
than regular Clients & Profits vendor checks because they show
the employee's salary, deductions, and taxes totals. Payroll checks
are available directly from CheckMark.
Q. Where can I get more information about CheckMark Payroll?
For sales information check their web site
Outsourced payroll services: