1) If you use Payroll software will it keep a running total of all entries for the year? Should like at year end a report can be pulled which shows total paid, total NIC 1 / secondary / 1a etc.
2) Leads on from Q1 Assuming a report can be pulled I imagine a reconciliation goes as such-
Opening balance plus PAYE expenses incurred, less what has been paid to HMRC, leaving the B/S total owing to HMRC, using the report to verify the BS year end liability.
I can only speak for Moneysoft payroll but a whole cariety of reports can be pulled off. Details of employees NI payments, tax deductions, employer summaries to name, hours worked if hourly but 4.
Moneysoft doesn't let you enter PAYE payments paid, as that is more an accounting function, but you can certainly see a list of payments that are due each month
Theres a 30 day trial if you want to have a play.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
12Pay includes the ability to enter actual payments made to HMRC, and its P32 report shows a month by month summary of the various components owed to HMRC and a reconciliation of payments against that.
Ah sorry Seb, I misunderstood your last question. There's a P32 report on Moneysoft too, which shows payments due to HMRC each month, but automatically assumes the payments have actually been made. Sounds like 12pay will be better suited for reconciliation purposes.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Ah sorry Seb, I misunderstood your last question. There's a P32 report on Moneysoft too, which shows payments due to HMRC each month, but automatically assumes the payments have actually been made. Sounds like 12pay will be better suited for reconciliation purposes.
In many cases the reconciliation isn't particularly useful, and a lot of sites with simple needs don't bother with it.
But it becomes very useful in cases where for example there have been historic underpayments, overpayments, CIS recoveries, revised FPS's for previous months, etc. It then becomes easier to see how much you owe now, based on total debt to date and total payments to date.
This is also helpful if you pay quarterly (the P32 in 12Pay includes quarterly totals as well as the annual total to date)
Hi John
You can opt to show the P32 items as not paid in Moneysoft so that they bring forward the balance each month. I do recall using that for a client in the very early days of me using Moneysoft although I dont tend to these days, just tell people that its only for the month and cannot be relied upon for b/forwards - only because for a few I cannot see whether they have paid for not (white label type or payroll only clients, or indeed any where you dont get their bank statements often enough!!)
Johnny - dont you just reconcile the PAYE nominal/account/ledger whatever you want to call it, much as you would the net wages? Sorry probably being a bit thick here as my brain is battered after 14 hours already done today!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
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Well because I've never been shown the way I usually go overboard. I'd want to see the 'official previous year end TB' together with every report up to year end - hoping everything reconciles to the year end owed to HMRC.
Not knowing how it is done by a Chartered leaves me to do it as an Auditor- sampling V census.
Not saying a Chartered performs sampling, but I have to be extra careful.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi Tom, may I ask how you'd reconcile this particular account? I'd have sided with Seb's logic - if there is a better way?
Well I can only answer the question with reference to 12Pay. In that software if you've entered the payments to HMRC, the CIS suffered, and any funding payments from HMRC then there is no more reconciliation to be done; the P32 report will show the outstanding figure based on the PAYE monthly amounts owed net of the detailed payments.
Well because I've never been shown the way I usually go overboard. I'd want to see the 'official previous year end TB' together with every report up to year end - hoping everything reconciles to the year end owed to HMRC.
I would expect nothing less Johnny.
Personally I dont consider it overboard but doing a good/thorough job.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Some can't be arsed with backing up figures, I like to cover my bases.
I understand your sentiment- thank you.
Your reply suggests that you think that there is something more that could be done in payroll software for to help reconcile the HMRC account, but I'm not able to imagine what it is.
My reply is to question how is best to reconcile the figures submitted through payroll software to a nominal account, whether it be 'a' HMRC account, or accounts split - such like PAYE and NI.
Maybe I've misunderstood the initial question.
As far as I'm concerned what is submitted through payroll are figures belonging to the past. I was asking what is the best report to use to reconcile against the nominals within the accounts.
I read the initial question as; if I submit X months worth of wages in a financial year how is best to reconcile those from the payroll software to a TB, year end summary, or a collective of each individual employee? That was my question to you.
-- Edited by abacus12345 on Sunday 14th of May 2017 11:10:09 PM
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Firstly, I've never seen any reason for splitting the HMRC liability into several nominal accounts, so I would have just one account for it. (PAYE/NI/Student loan etc)
So the P32 report with detailed payments gives one reconciliation that all is well with payments to HMRC.
To tie that in with the nominal/TB in my own business I had a monthly spreadsheet of reconciliations, a worksheet tab for each one. The HMRC PAYE tab of that would have a screenshot of the relevant nominal ledger account in the accounting system, and a screenshot of the P32 report. Usually these would show the same balance owing unless there was some kind of error or unanticipated complexity. If they didn't agree then some Excel cells could be used to explain the difference.
Hi Jonny
You can download a free trial period of moneysoft and there is a sample report mode you can play with - or of course just set up a dummy company and see what reports you can grab. These will at least give you an idea of what is possible. Actually Im surprised you havent what with being the resident BKN software tester!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ha ha yes quite! Although the trick is knowing which report should be used for verification purposes. I'd not thought about a screenshot before. The other issue is having reams and reams of information for a simple set of accounts. But if that's how it is to be. It's quite frustrating that only bank reconciliations are really covered in education - But again, that's just the way it is! Lol.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Strictly speaking it should be simple enough. If all staff are paid on time and PAYE is too then there should only be an o/s amount for the last pay period. Ok for net wages this might encompass more than one pay period, but it shouldnt be out by much.
OK, I know .....I woke up from a dream. Real life takes over and clients dont pay their bills on time, pay the staff the wrong amount, pay part payments by way of advances to staff, blur blur blur......big tick back excercise. Ive got one on the go at the mo - 'reet' nightmare!! If you are really bored I can pass it over to you! Well I could if I had time to redact all the info, by which time I might as well have done it. Seemed like a good idea though.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ha ha! Got to love tick and bash exercises. You're right, all is well if bills are paid on time. Even better is when all payable nominals, such like VAT, coincide with an accounting year-end.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
