Processing payslip in Accounting when Payroll is done externally

Question asked by Miles Bartkowiak 3 years ago


I'm just looking for best approach to processing payslips which weren't done in Clearbooks. So our accountants do payroll and i am looking for best way of processing it so reporting is not getting screwed.

Should I process Salary under "Salaries" code and any expenses with some other account code (depending on type of expense, travel, phones, etc), then add negative value for each of the deduction as in PAYE, NI, Pension contributions etc?

Or should i just process end figure as Salaries and not worry about splitting line items?

4 Replies

Hi Miles,

When you say expenses, do you mean this is a deduction on their wages? It should just be the end amount coded to salaries which the system does automatically. You would put their basic pay and then add deduction lines for any deductions so that the system can calculate. Please see the guides below.

Employee expenses guide

How to process payroll

All the best,



Hi Mohamed,

So this would be correct way to do it?

By expenses i mean our off payroll labour only sub-contractors tend to incur fair amount of expenses each week which we are reimbursing to them.

sorry, i'm not sure how to edit post,

i was thinking of 2 issues at the same time. On this thread i mean our employed workforce.

We have both, on payroll, off payroll working for us.

If you are processing payslips in accounting when your payroll is done externally, you will need to ensure that you have accurate and up-to-date payroll information from your external payroll provider. This information should include details of your employees' gross pay, tax deductions, and any other payroll deductions or adjustments.

Once you have this information, you can record the payroll transactions in your accounting system. Depending on the software you are using, you may be able to import the payroll information directly from your external payroll provider or manually enter the information into your accounting system.

When processing the payroll transactions in your accounting system, you should ensure that you are correctly categorizing the transactions and applying the correct tax codes. You may also need to make adjustments for any pension contributions, benefits, or other deductions that are not included in your external payroll provider's data.

It's important to reconcile your payroll data with your bank statements and ensure that all transactions are recorded accurately in your accounting system. This will help to ensure that your financial records are up-to-date and accurate.

If you are unsure about how to process payslip in accounting when your payroll is done externally, you may wish to seek advice from an accountant or bookkeeper who is familiar with your accounting system and payroll processes.

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