With Refrens, you can create & manage employee accounts, record salaries & reimbursements, and other employee expenses with ease!
Let’s see how!
1) Creating Salary Accounts
There are two ways you can manage employee salaries on Refrens -
1A) Create different salary accounts for each employee
OR
1B) Create a single salary account to record all employee salaries in one place.
Let’s look at both the methods.
1A) Create different salary accounts for each employee
If you want to record each employee's salary separately, you'll need to set up a salary account for each employee.
You can do this by creating a Salary Account Group, which will hold all the individual salary accounts.
For this, Go to Advanced Accounting > Account Groups
Then click on ‘Create New Account Group’ to create your Salary Account Group as shown below:
You will see a new pop-up form (like below) where you can enter the Account Group Name, Account Group Type, and Account Group Category:
After creating the Salary Account group, you will need to create individual salary accounts for all your employees.
To do that, go to your Accounts dashboard and click on ‘Create New Account’:
You will see a pop-up form like below:
As you see, here you can -
Add your Employee’s name (eg. Mitesh’ Salary) in the Account Name
Select the “Salary Account Group” in the Account Group dropdown
Add Opening Balance (if any)
Once done, click on ‘Submit’ to create a designated salary account for your employee.
Similarly, you can create separate salary accounts for all your employees.
1B) Create a single salary account to record all employee salaries in one place
To record all employee salaries in a single salary account, you do not need to create a separate Account Group.
Just create a single account named “Salary Account” as instructed below:
Firstly, go to your Accounts dashboard, and click on “Create New Account”:
In the account name, just write “Salary Account”
In the account group. select “Employee_costs” OR “Indirect_Expense” as per your preference.
That’s it. Your salary accounts are all set!
Now let's see how you can record employee salaries.
2) Recording Employee Salaries
2.1) Recording Salaries
To record employee salaries, go to Accounting > Purchases and Expenses from the sidebar, and click on ‘New Expenditure’:
A form to record an expense will open up as shown below:
As you see, Here, you will have to add the following details:
Expense date: The date on which the salary is recorded
Select Vendor: Here select “Petty Expenses”
Amount Spent: The amount of the salary paid to the employee
Expense Ledger: Select the employee’s individual salary account if you've set up separate accounts for each employee. If you’re using a single salary account for all employees, then simply select that account instead.
Other details will either be automatically filled by the system OR are not mandatory to be filled.
2.2) Automatically Record Salaries For Every Month
While recording a salary, you can also choose to record it for every month automatically.
To do this, simply enable the 'This is a Recurring Expenditure' option:
Then, set the recurrence duration (i.e. Every Month).
You can also choose whether you want the auto-generated salary record to be kept as a Draft or directly Saved in your system.
That’s it!
2.3) Recording Salary Transaction Details
If you are yet to pay the salary, you can simply click on ‘Save and Continue’ to record the salary in your system.
But if you have paid the salary, click on ‘Save and Mark Payment’ to record the payment made.
When you’ll click on ‘Save and Mark Payment’, the below given form will appear:
Here, you can record the Amount Paid, Payment Method, Payment Account, etc.
(To know more about recording payment details, check out this article.)
That’s it!
Recording employee salaries on Refrens is that easy!
If you want to record employee reimbursements as well, check out this article.
If you still have any questions, feel free to drop an email at care@refrens.com or reach out to us on chat support for quicker assistance.