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How do I set up a payroll clearing account in QuickBooks? |



A payroll clearing account is a bank account that financial institutions hold for you and your company. This type of account helps to facilitate the movement of funds between two or more companies in order to pay employees, taxes, benefits, etc. The process can be done through an online banking website such as Zelle or PayPal; however, these accounts are considered insufficient by many tax authorities because they allow only one-way transfers on behalf of an employer and employee which may not satisfy all reporting requirements.

A payroll clearing account is a type of bank account that employers use to pay employees. It helps companies avoid paying taxes twice on the same income. The “payroll clearing account journal entry example” will help you set up your own payroll clearing account in QuickBooks.

How do I set up a payroll clearing account in QuickBooks? |

Here’s how to do it:

  1. Select the Banking tab.
  2. Find the transaction by clicking on the bank account that is used to pay staff.
  3. Select the option to add.
  4. Select expenditure as the transaction type, and then Payroll Clearing as the account.
  5. Click Add after adding out of scope for the Tax code.

How can I To begin, open a clearing account. in QuickBooks in this regard?

To open a clearing account, follow these steps:

  1. Select Chart of Accounts from the Lists menu.
  2. Select New by right-clicking anywhere on the Chart of Accounts.
  3. Select the Bank radio option in the Add New Account box.
  4. Continue by pressing the Enter key.
  5. Enter Clearing Account, Barter Account, or Wash Account in the Account Name box.

Is a payroll clearing account a good thing to have? According to John W. Jay, MBA, who has written several books and numerous essays about accounting, a payroll clearing account is a general ledger account that is normally set up in the asset section of the balance sheet.

In turn, how do I create a payroll account in QuickBooks?

To create a Payroll account, follow the steps below.

  1. At the top, click the Gear icon, then Chart of Accounts.
  2. In the top right corner of your screen, click New.
  3. From the Account Type drop-down option, choose Expenses.
  4. From the Detail Type drop-down box, choose Payroll Expenses.

What is the payroll journal entry?

The following are the most common forms of payroll journal entries: This is the first recording. The main payroll journal entry is used to record a payroll for the first time. This item tracks workers’ gross earnings, as well as any withholdings from their pay and any extra taxes the firm owes the government.

Answers to Related Questions

Is it true that a clearing account is an expense?

Although the clearing account is a general ledger account, it is not utilized for posting. This account is often set up to keep revenue and cost amounts until they are moved to retained profits on the balance sheet at the conclusion of the fiscal period.

What is a clearing account’s purpose?

A clearing account is a temporary account that holds expenses or amounts to be moved to another account. The income summary account, for example, contains revenue and cost numbers that will be moved to retained earnings at the end of the fiscal quarter.

A clearing account in QuickBooks is what kind of account it is.

A clearing account is used to transfer money from one account to another when it is not possible to do so directly. Because you consistently take out the same amount that you put in, this account usually has a balance of A Clearing Account is an account you use to move money from one account to another account when you cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in. It may also be called a Barter or Wash Account..00. It’s also known as a Wash Account or a Barter Account.

What is the procedure for opening a clearing account?

To begin, open a clearing account.

  1. Select Chart of Accounts from the Lists menu.
  2. Select New by right-clicking anywhere on the Chart of Accounts.
  3. Select the Bank radio option in the Add New Account box.
  4. Continue by pressing the Enter key.
  5. Enter Clearing Account, Barter Account, or Wash Account in the Account Name box.

What is a cash clearing account and how does it work?

Using the cash clearing technique of reconciliation, the Cash Clearing process makes accounting entries for each scheduled payment that has been paid, reconciled, and cleared for bank accounts. In a bank statement, the Cash/Bank Clearing account is used to record unidentified debits and credits.

What is the difference between a general ledger clearing account and a general ledger clearing account?

A clearing account is a general ledger account that is used to combine money temporarily moved from other temporary accounts.

Cash clearing is a sort of account.

Clearing accounts are simpler accounts in which you may quickly input cash as a clearing amount until it is recognized, validated, and deposited in your bank. A clearing account may also be used to manage receivables.

A payroll clearing account is a specific sort of account.

A payroll clearing account is a separate bank account used only for the purpose of paying workers. To determine the amount of money that has to be placed into the payroll clearing account, add up all employee checks and direct deposits.

How can I establish a payroll for a small business?

Here are ten steps to assist you set up your small business’s payroll system.

  1. Obtain a Federal Employer Identification Number (FEIN) (EIN)
  2. Check to see whether you need state or local identification.
  3. Employee or Independent Contractor?
  4. Take care of the paperwork for your employees.
  5. Choose a pay period.
  6. Document the terms of your employee’s compensation carefully.

In QuickBooks, where can I find payroll settings?

Open QuickBooks Desktop to begin setting up your payroll. In the top toolbar, click the Employees tab. To launch the wizard, scroll down and pick Payroll Setup from the drop-down option. Follow the Payroll Setup Wizard’s instructions.

How can I set up a payment system for an employee?

How to Handle Payroll on Your Own

  1. Step 1: Have each employee fill out a W-4 form.
  2. Step 2: Look for or register for Employer Identification Numbers (EINs).
  3. Step 3: Decide on a compensation plan.
  4. Step 4: Determine and deduct income taxes.
  5. Step 5: Make a tax payment.
  6. Step 6: File tax forms & employee W-2s.

To set up payroll, what information do I need?

Your employment identification number from the federal government (EIN) Your tax withholding identification number from your state. Your local tax identification numbers (if applicable)

What is the definition of a payroll asset?

The balance sheet of a firm is a list of the company’s assets and liabilities. The net value of a corporation is equal to its assets less its liabilities plus its shareholders’ equity. Real estate, cash in bank accounts, and accounts receivable are examples of assets.

In QuickBooks online, what is payroll clearing?

The word “clearing” in the context of a payroll clearing account refers to the use of this accounting system to “clear” income and costs and reconcile any possible payroll irregularities.

What is the difference between a payroll Exchange account and a bank account?

Payroll-related costs are recorded in the payroll expense account and the payroll tax expense account by business owners. The payroll expenditure account displays the total of your workers’ gross compensation for a pay period. The amount you owe your workers in return for the job they accomplish for you is referred to as gross compensation.

What is a salary control account, and how does it work?

The wages control account balance should represent the total amount owing to all employees. We boosted it (credited it) with gross pay, then lowered it (debited it) with any deductions made, leaving the balance to pay.

What is the purpose of a payroll reconciliation?

In accounting, reconciliation entails ensuring that transactions are in balance and applied to the proper account. Reconciling the payroll check entails making sure that all of the accounts impacted by the payroll transaction are in agreement and total the gross amount utilized to calculate the check.

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Personal Finance

Instant Money Transfers: How to Speed Up Your Financial Transactions?




People today are no longer limited to using traditional banking methods and payment options like cash or checks for their financial transactions. With digital payment options becoming increasingly popular, money transfers have become easier. However, while these solutions offer convenience, they only sometimes guarantee a speedy transaction of funds from one party to another. If you need an instant transfer solution that allows you to move your funds without any hassles quickly, keep reading. Here are some tips to help you get started with an instant money transfer:

Find a Trustworthy Money Transfer Provider

Finding a trustworthy money transfer provider is paramount in ensuring your money’s safe and efficient transfer. Start by researching different providers, particularly their reputation, customer reviews, and transaction security protocols. The team at Paysend can help you send money to the Philippines from the USA in just a matter of seconds. A reliable provider should have a robust security framework to guard against fraud and hacking attempts. Additionally, consider the speed of their service, the fees they charge, and the exchange rates they offer.

Some providers may offer attractive transfer rates but compensate with hidden charges, so read the fine print. Customer service is another important factor; a good provider will have a responsive and knowledgeable support team to promptly address any issues or concerns. Regulatory compliance is also crucial – ensure the appropriate financial authorities regulate the provider. Remember, a trustworthy provider prioritizes the security and satisfaction of its customers above all else.

Select Your Preferred Payment Method

Choosing your preferred payment method is a critical step in instant money transfers. Several payment methods are available, and the best choice often depends on one’s circumstances and preferences. The most common payment options include bank transfers, debit or credit cards, and digital wallets. Bank transfers, while reliable, may provide a different speed than some users require. Debit or credit card payments are typically faster but may carry higher fees.

Digital wallets like PayPal or Apple Pay offer speed and convenience, allowing you to transfer funds digitally without requiring bank account information. The factor to consider here is not just the convenience of the payment method but also its transaction speed, security, and associated charges. Always select a payment method that suits your needs regarding these factors.

Sign Up for an Account

Once you have selected the ideal payment method and provider, it is time to sign up for an account. Most providers will require personal information such as your name, address, email ID, and phone number, so make sure the details you provided are accurate. You might also be asked to supply additional documents, such as identification proof and bank statements, to verify your identity.

Sometimes, you may need to link your bank account with the transfer provider’s platform; read through their documentation carefully to understand what steps you need to take. Once the registration process is complete, you can access and use the money transfer service for quick transfers.

Initiate the Money Transfer

Most providers will require you to register on their platform with valid ID documents before proceeding. Enter all the necessary details correctly and accurately, including recipient information and account numbers. Additionally, make sure that you double-check the amount of money being transferred and the associated fees.


Confirm everything is correct before hitting ‘Send’ to avoid costly mistakes or delays in transfer processing. You should receive an email or text message confirming the transfer with your transaction details, including the recipient’s account information and a tracking number. You can use this tracking number to monitor the progress of your money transfer.

Complete the Money Transfer Process

This usually requires providing basic information such as the recipient’s name, address, and contact details. Depending on your provider, you may also need to specify what currency you’re sending and offer additional security authentication. Once this is done, enter the amount you wish to transfer, verify the transaction details, and approve it. After that, your money should be on its way to the recipient’s account immediately.

Some providers offer extra features such as tracking services or reminders for upcoming transfers for added security and convenience. These features can come in handy when sending payments regularly or tracking the status of a transaction. Additionally, look out for any special offers, discounts, or rewards available to loyal customers. Many money transfer providers offer these incentives as a way of showing appreciation and encouraging loyalty among their customers.

Monitor the Status of Your Transfer

Most providers will allow you to monitor the progress of your transfer in real time. Some may even send notifications via email or text message when the money reaches its destination. If you sense any delays, contact customer support for assistance. Money transfers can take a few minutes to several hours, depending on the selected payment method and recipient country.


Finally, always save all records related to your money transfers, including emails and receipts. If there are any discrepancies or disputes, you can refer to these documents for clarification. With the help of a reliable provider and modern payment methods like digital wallets, you can now easily make instant money transfers. So get started today and experience the convenience of instant money transfer services.

Receive and Verify the Transaction

Once the money has been transferred, you or the recipient should receive a notification of completion. At this point, ensuring the transaction was successful, and all details were correct is important. For security purposes, some providers may ask for additional verification from either party to avoid fraud and other malicious activities. This process could include providing a digital signature or proof of identity.

Once the verification is complete, the funds should be available in the recipient’s account almost immediately. If you have any concerns, contact customer support to get assistance or help resolve any issues. Remember that reliable providers prioritize customer satisfaction and security above all else. With these steps, you can now easily and safely transfer money with instant money transfer services.

Nowadays, it’s more important than ever to employ secure digital payment methods in your daily financial transactions. That’s why researching which providers offer the best services regarding speed, security, transaction fees, and customer support pays off. With the right provider, you can have peace of mind knowing that your money transfers will be conducted instantaneously and securely.

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Personal Finance

The Ins and Outs of Getting a Loan With Bad Credit




If financial difficulties or uninformed decisions have left you with bad credit, you may not know where to turn for a loan. While borrowing money with a low credit score may take additional research or work, it’s likely still within your reach.  

Many lenders offer bad credit loans for people who need extra cash but may not have the best credit background. Applying for a loan with bad credit may feel intimidating, but the following considerations could make the process easier.

Start by Checking Your Credit

Before you begin shopping for loans, check your credit report. Some creditors require specific scores for each loan product, even those designed for bad credit, so knowing your score saves you time.

It’s also important to check your credit report for errors that may drag your score down and limit your loan options. You can access this information from Equifax and TransUnion for free online.

Compare Your Options

While a lower credit score likely disqualifies you from some personal loans, you may still have many options. Some lenders offer loans specifically for people with low credit scores who struggle to qualify for other options.


Bad credit loans may require a deposit or other fees, have higher interest rates than other loans, or include income requirements. However, they may also offer a wide range of payment terms and options like online portals that make managing your loan easier. With some research, you could find the right fit for your circumstances.  

Whenever possible, take advantage of loan prequalification. Many lenders allow you to check your potential eligibility for a loan by providing personal and financial information. They use that to run a soft credit check, which doesn’t affect your credit score. If you pre-qualify, they’ll provide information about possible rates and terms. You could complete prequalification forms for multiple loans to help you find your best option.

Improve Your Application

Some financial decisions improve your loan eligibility. A friend or family member with better credit may agree to co-sign your loan. In that case, their financial information influences your eligibility for a loan.

Cosigners take on substantial risk. If you fail to repay your loan, your cosigner becomes responsible. Likewise, issues with the loan could hurt their credit score and put a strain on your interpersonal relationship.  


If multiple lenders have declined your applications for unsecured loans, consider a secured loan instead. Secured loans require collateral, like a deposit, car, or other property. If borrowers don’t repay their loans, lenders may seize the collateral. Lending institutions don’t take on as much risk with secured loans as unsecured loans so they may have more lenient credit requirements for borrowers.

Avoid Scams

Unfortunately, fraudulent lenders often exploit consumers who have limited loan options. Before providing a lender with any personal or financial information, ensure they’re legitimate. Otherwise, you risk having your identity stolen or paying fees for a loan you never receive.

Be wary of anyone offering guaranteed approval or soliciting your business via cold calls. Always verify loan servicers’ contact information and check their reviews on trusted third-party websites.

The Bottom Line

If you have bad credit, you could still qualify for a personal loan. Remember to check your credit score, investigate your options, and confirm a lender’s legitimacy before applying. If you still struggle to qualify, you may need a cosigner or collateral to boost your application.

By taking some extra steps, you can make getting a loan easier and safer.

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Personal Finance

Four Ways to Save on Fuel in 2023





From increasing energy bills to price hikes at online stores and supermarkets, all individuals globally feel the need to make their money to go further and do more. And there has never been a perfect time to know how to save more on fuel than now.

From getting fuel cards with great deals and driving more efficiently to using telematics and keeping your vehicle in good condition, here are different ways to save money on fuel.

Get a Fuel Card

A fuel card can provide you with more than the ability to purchase fuel from a good station. With a fuel card, you can control your business’s fuel spend by getting discounts on fuel pump rates, setting spending limitations, and increasing your cash flow – all enabling you to save a significant amount of money.

Fuel cards allow savings on fuel, which means that the price you pay is always less compared to the one indicated on the fuel pump machine. With numerous fuel cards available out there, find the right partner with excellent deals.

Use Telematics/Advanced Route Planning

Digital telematics solutions come with real-time GPS tracking as well as remote automobile diagnostics helping individuals and company owners to thoughtfully plan the most efficient routes depending on different data points. A high-quality telematics solution also integrates with route optimisation systems to plan the most efficient routes and offer turn-by-turn directions and navigations.


Well-planned routes allow automobiles to get from point C to D efficiently, significantly minimising time spent and distance covered, saving on fuel. Heavy-duty automobiles can avoid routes with steep hills. You can also re-plan a hilly route for a light and medium-duty automobile.

But as you do that, ensure the route you choose doesn’t take your drivers too far. Side-step all congested routes and those that require excessive stopping and starting or cause unnecessary idling.

Drive More Efficiently

One of the proven ways to save on fuel is to manage driver behavior. Whether you’re a driver or fleet manager, you need to keep yourself or drivers accountable for how they utilize their fuel cards.

You should also reinforce ways to conserve fuel through safety training – many of the behaviors that are taught as techniques of safe driving, such as driving more efficiently. Most businesses and individuals use telematics to control driver behavior, such as harsh accelerating or braking, to maximize return on investment by minimizing fuel spend.

Keep Your Vehicle in Good Condition

If you keep your automobile in excellent condition by servicing it in line with the guidelines of the manufacturer, it’ll help you save on fuel costs. Fix any faults quickly to make sure your vehicle is operating efficiently.


When you keep your car in excellent condition, you’ll enjoy numerous benefits, saving fuel being one of them. A vehicle that isn’t serviced based on the guidelines of the manufacturer can increase the consumption of fuel by approximately 50%.

Integrate these four ways into your automobile’s daily activities, and you’ll be able to save on fuel.

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