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Table of Contents


Purpose

This article provides step-by-step guide for the payroll reconciliation process between Aspire and your non-QuickBooks Desktop payroll service provider. These steps will also apply to Quickbooks Online users.

In this article, you will:

  • Compare Aspire's weekly or bi-weekly payroll gross dollar amount with the gross dollar paid by the payroll service to direct labor employees.

  • Then make corrections or create a journal entry in the accounting system to ensure Aspire payroll matches your payroll service summary for the same period.


Payroll Service Invoice Summary

  • First, print the payroll service invoice summary and detail from your payroll service.

  • Record the start and end date for the pay periods.


Calculate Hours from Weekly Time Review

  • In Aspire, go to the Schedule Board area and select the Weekly Time Review tab.

Record the total hours and overtime hours for the weekly pay period, or two weeks worth if you're bi-weekly, for the dates you're reviewing.


Write them down in this way:

Weekly

Pay Period: ________ Total Hours: _______ OT Hours: _______

Total Hours: ________ Less OT Hours: ________ Regular Hours: ________

(Total Hours at Weekly Time Review includes OT hours)

Bi-Weekly

Pay Period: ________ Total Hours: _______ OT Hours: _______

Pay Period: ________ Total Hours: _______ OT Hours: _______

Total Hours: ________ Less OT Hours: ________ Regular Hours: ________


Record Labor Costs from End of Month Report

Now, get the base labor cost and overtime labor cost from Aspire through the following:

  • Go into the End of Month Report (Reports ➡️ End of Month)

  • On the Labor tab, change the Date Range to Custom - Between

  • Adjust the date range to the period you're reviewing.

  • Scroll to the Totals at the bottom of the report to get your Base Labor Cost and Overtime Labor Costs.
    (The Total Gross in Aspire = Base Labor Cost + Overtime Labor Cost).

  • Record these costs.

Base Labor Cost: $________

Overtime Labor Cost: + $ ________

-----------------------

Total Gross: $ ________


Create a Payroll Reconciliation Pivot Report

  • Go to the Reports area of Aspire, select the Standard Reports and pull up the Hours Pivot Table Report.

  • Create a new pivot report with the following criteria and save it and name it Payroll Pivot Report for Reconciliation.

  • Looking at this report, make sure the total for Regular Hours, OT Hours, and Hours match the hours on the Weekly Time Review from the calculation above.

  • Ensure the Base Labor Cost and Overtime Labor Costs match the End of Month Report as recorded from the above calculation.

📌 Note: Before exporting to Excel, if there is employee gross pay that is not being entered in the Accrued Payroll Holding account in your accounting system because you are choosing to enter all their gross pay as either direct or indirect, then expense to a division. You can filter out that employee or pay schedule (if it’s all salaried employee’s) before exporting this pivot report to Excel. If this is the case, remember when closing the month, you cannot use the Labor tab on the End of Month Report for the labor journal entry into your accounting system. You will need to create a pivot report and exclude these same employee’s or payroll schedule to determine the value.

  • Go to the top right hand corner of the Pivot Report and export this report to Excel by hovering over the Save icon. Select the Export to Excel option.

  • Open the exported file from your browser. This is the Reconciliation Spreadsheet.


Prepare the Reconciliation Spreadsheet

In order to move forward with the Reconciliation process, you'll need to first reformat the Reconciliation Spreadsheet.

Add the following columns to your Excel file:

  • Total column

    • Create a formula to add the Base Cost column plus OT Premium column.

      • For example: =E2+H2

    • Copy the formula down to all below cells using the corner icon

  • Add a Payroll Service column - this will be filled in later.

    • This field will have the Payroll Service gross value filled in and will show the difference between Aspire Payroll Gross and you Payroll Service Gross.

  • Add a Difference column

    • Create a formula in excel to subtract the Total column you created above from the Payroll Service column.

    • Copy the formula down to all below cells using the corner icon including the Grand Total line

  • Add a Notes column

    • This is to add notes later in the process on why there is a difference between your Payroll numbers and the numbers within Aspire.

  • Add a Division column

    • This field will be used later in the process.


Enter Payroll Service Values into Reconciliation Spreadsheet

  • Acquire the payroll report from your Payroll Service that provides gross pay for each employee for the pay period your reconciling.

  • Take the Total Gross Amount for each employee from the report provided by your payroll service and enter the numbers into the Payroll Service column of the Reconciliation Spreadsheet as shown below.

    • The Reconciliation Spreadsheet will only show employee’s you manage in Aspire. It may be helpful to circle or check off these employees on the payroll service report to more easily validate between the two lists.

  • Add information to the Notes column explaining why the amount maybe off for the lines that have a difference more than a couple dollars.

  • In the Division column, enter the division in which the employee primarily works, to aid you when creating the partial journal entry.

  • Investigate if the hours are different between Aspire and your payroll service.

    • In our test case below, Test Employee on line 3 has a major difference between the Aspire Total and the total from our payroll service.

    • Investigation reveals that the reason is because the Test Employee’s Base Rate does not match the rate in the payroll service system. However, there may be other reasons you will find during reconciliation.

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