The last thing you want when you are closing an accounting period is to discover errors in the bookkeeping. Even a small discrepancy between the payroll system and the accounts can lead to unnecessary extra work and delays. But with a thorough reconciliation, you can make sure the figures add up, and you can close the year without worries.
Here is a practical guide to how to go about it:
What does reconciling actually mean?
In short: you check that payroll has been booked correctly in the accounts. This means that what you have run in the payroll system must also be found – and match – in the accounting system. This applies, for example, to:
- Net pay
- A-tax
- Pension
- Holiday pay
- ATP and other contributions
Is everything in place? If not, there may be missing entries or errors in the integration – or perhaps a pay run that was never booked. And then the year-end can quickly become a hassle. That is why it is a good idea to get it sorted in good time.
Why is it important?
There are three good reasons to prioritise reconciliation before the accounting period ends:
- Avoid surprises – for example that the balance sheet doesn't add up when the accountant asks for documentation.
- Get a better overview of the year's payroll costs, so you can plan the coming year more precisely.
- Avoid errors in reporting to the authorities – and save time on support, corrections and extra work.
When your reconciliation is in order, you also get more peace of mind – both now and at the end of the financial year.
How to do a reconciliation – without drowning in detail
Compare the figures
To compare the figures, you need two things: a report from the payroll system and one from the accounting system. They must cover the same period and have totals that can be reconciled with each other.
Do the amounts match up?
Once you have gone through the amounts and everything matches, you can move on. If not, it is a good idea to double-check the figures.
Find and correct differences
Pay runs and bookkeeping are closely linked. If you find an error in one place, it is very likely that several accounts are affected. Find the cause and correct the error in the right place – and remember to document what you do.
Info:
Documentation is important, but fortunately it is backed up by your payslips and payroll system. This means that extracts from the payroll system count as your documentation – if it is not already in the system.
Use the summer wisely – and avoid problems later
It pays to compare your payroll entries with your accounting system on an ongoing basis. That way, you avoid surprises in the payroll bookkeeping when it is time to close the year. If you make sure to reconcile payroll against Zenegy Numbers or another accounting system every month, quarter or half-year, you make it easier to find entries that may have strayed into the wrong account, while the pay runs are still fresh in your mind.
In Zenegy Payroll, we have also made it easy to reconcile payroll against eIncome. You simply upload your eIncome file to Zenegy Payroll, and we quickly and easily find the places where payroll may not match what SKAT has.
So you can rest assured that you have the best conditions for reconciled payroll when you use both Zenegy Payroll and Zenegy Numbers.
Want to optimise your reconciliation?
Take a look at how Zenegy Numbers and Payroll work together – and make your bookkeeping more precise, automated and clear.
Want to see exactly how to find the right figures in the systems? Here are two guides to help you on your way:
Year-end – closing the financial year (Numbers)
A step-by-step guide to closing a financial year in Zenegy Numbers.
End of year – documentation and reconciliation (Payroll)
Shows how to get the documentation you need in Zenegy Payroll – so you can quickly check that the figures add up.
With these two guides to hand, you are well equipped to get your reconciliation in order – in both payroll and accounting.
