The Fast Close, Part 9 (#24)

In this episode, we talk about the techniques that can be used to improve the closing process for payroll. Key points discussed are:

  • A somewhat inaccurate approach is to accrue for commissions based on the historical commission rate.

  • When the commission structure is more complex, calculate commissions just before the close, and complete the calculations for the final day of the month during the close.

  • Require employees to enter their hours worked into an online timekeeping system, and remind them to do so several times as the month-end approaches. Then accrue an estimated wage amount for anyone who did not enter their time for the last few days of the month. This results in a fairly accurate overall wage accrual.

Related Courses

Closing the Books
The Soft Close
The Year-end Close