How do I record my employees’ salaries in Zoho Books?

You can record your employees’ salaries by creating an expense or a manual journal.

Record Employee Salary as an Expense

  • Go to Purchases on the left sidebar and select Expenses.
  • Click + New in the top right corner of the page.
  • Select the Expense Account. For example,say Salaries and Employee Wages.
  • Enter the other necessary details.
  • Click Save.

Record Employee Salary as a Manual Journal

  • Go to Accountant on the left sidebar and select Manual Journals.
  • Click + New Journal in the top right corner of the page.
  • Fill in the required details.
  • Debit the expense account (Salaries and Employee Wages in this case) and credit the bank account from which salary is paid.
  • If the employee’s salary contains components such as TDS, EPF, and ESI,you have to create individual accounts (in Chart of Accounts) for each component with account type as Other Current Liability.
  • Click Save and Publish.

Insight: If you are looking for full-fledged software to maintain your employees’ salaries and wages, you can use Zoho Payroll.

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