Every business and company, small or large, has different costs: from investing in a project to the running costs of the company. High money transfers are usually made by checks and interbank remittances; But what if these costs are low? Since it does not make sense to pay these costs by check and remittance, a salary is used to cover them. In this article, the concept of revolving salary in Accounting And we examine its necessities. Stay with us.
What is a salary and who is a revolving salary? | Items to which the salary is entitled | The need to use a salary | Salary Supervisors | How to record salary expenses
What is a salary and who is a payroll in accounting?
Salary is the small amount that a company maintains to cover its small expenses. These costs are high, but so low that they cannot be paid by check or bank transfer.
A recruiter is a person whose job is to spend a salary on the required departments.
What are the items to which the salary belongs?
The costs that fall into the payroll subset vary widely depending on the size of the company, including:
- Cost of office supplies such as paper and pens;
- Breakfast, lunch, tea and other snacks;
- Issuance of cards;
- Buy flowers and plants and other consumer or decorative items;
- Reimburse the costs of employees who have paid for their own work out of pocket.
What is the need for payroll in accounting?
There are different costs to running each company. The best way to manage these costs is to use a salary. In this way, the loss of revenue at unnecessary minor costs is prevented. You must have heard the famous saying, “Gather up little by little, then it will be the sea.” If a business does not pay attention to these small expenses, it may be time Summarize year-end financial statements, Face a host of small expenses that have skyrocketed.
Who is responsible for monitoring salaries?
Individuals in the company are usually selected as trustees and salaried cashiers to oversee the payment process. In larger companies, a separate fund may be provided for each section.
The task of this group of people is to provide a salary budget and to record all salary expenses. The payroll cashier is responsible for financing it. The trustee also receives and records the expenses incurred by the payroll. The existence of these two organizational positions is important, because by limiting the access of employees to the salary fund, its loss is prevented.
Things to know about the payroll
The salary fund, like any other fund, must be reviewed periodically. These reviews lead to better cost and revenue management. If the expenses exceed the income received by the fund, its financial balance will be negative; On the contrary, as revenues from expenditures increase, we will see a positive balance in the fund. Obviously, the best case scenario is when there is a balance between the input and output of the payroll. If the salary balance is negative, the cause must be investigated and addressed.
Many companies regulate wage costs by enacting strict rules and try to avoid wasting them.
How are salary expenses recorded?
In general, recording the salary is the responsibility of the company’s accountant. The accountant receives relevant information from the trustee or cashier. When the payroll is engaged in spending, expenses are recorded only in the financial statements; However, if the trustee or the payroll officer requests a higher amount, it will be recorded in the accounting office, provided the receipts are received. The positive and negative balance of the salary fund are also recorded in the accounting books. These records are important for submission to the tax office and must be done carefully. To reduce errors in registering your accounts, it is better to leave your accounting work to a specialist or from Experienced auditing professionals Get control of your offices and accounts.