To get started, you need to make sure that everything you paid during the past financial year in regards to payroll matches what is shown in your accounts.

Remember to reconcile once the financial year is OVER.

 

 You will need:

 

From Paycycle

Your Payroll Activity Summary report, from 1 July 2011 to 30 June 2012.

You can either select a Customised Report or simply click on "Payroll Activity Summary last financial year".

You will have to pay special attention to the Earnings, Tax and Super Totals.

 

 

 

From Your Accounting system

A summary of each account (Wages, Taxes and Super) where assigned to.

 

If you use Xero

If you've been syncing Xero and Paycycle, your payroll and ledgers should be in line!

Just in case you want to be mega-certain (or you are one of those who LOVES cross and double checking), here is where you would find the Accounts Reports.

Go to Reports...Detail Reports...Account Transactions

There, select the account you want the transaction history from, and remember the dates must match the financial year.

This way, and you'll get a detail of every single entry.

 

Earnings Reconciliation

 

Main thing about Earnings Reconciliation is making sure your Totals Earnings in Paycycle equals the total of the Wages Expense account in your accounting system.

 

In Xero, we recommend you check the Account Transactions Report for the Wages account (if you are still using Xero's default accounts, that would be #477), since if the totals don't match, you'll be able to see the list of transactions and compare them with posted payruns in Paycycle.

 

Tax Reconciliation

 

To reconcile Tax, you need to make sure the Total Tax in the Payroll Activity Summary (from within Paycycle) matches the Total Credit entries within the PAYG Withholdings Payable Transactions.

 

In Xero

You could either export the Account Transactions report, or if you are uncertain about the account, you could go to the Balance Sheet under Reports.

Find the PAYG Withholdings Payable under Liabilities.

Click on one of the total figures which will take you to the corresponding transaction report. 

Just make sure the dates are for the whole financial year.

 

Super Reconciliation

 

Reconciling Super is similar to your Total Earnings, in that the Total Super in Paycycle should match the total Super Expense account in your accounting system.

Make sure you look at the Expense account, not the Super Liability account because your payments will alter the balance of this account.