Making the Most of Journal Entry Reports in BambooHR

How should I use the standard and custom journal entry reports in BambooHR?

Purpose: This guide will teach you how to effectively use journal entry reports in BambooHR. It will explain how these reports are generally used and how they may be beneficial for your payroll records.

Table of Contents

If you need help building your journal entry reports, check out this help guide!

What are journal entry reports?

In BambooHR® Payroll, a journal entry report records all financial transactions related to payroll processing. It summarizes wages, deductions, employer taxes, and benefit contributions into debits and credits for accounting reconciliation. This ensures that payroll transactions are accurately reflected in your general ledger (GL), providing a clear picture of your financial activities and supporting better financial oversight.

What is the purpose of journal entry reports?

The main job of journal entry reports is to keep your financial records accurate and complete. They act as a link between your payroll system and your accounting system, making sure all payroll transactions are recorded correctly in your financial books. This is super important for staying on top of accounting standards and regulations. With accurate financial data, you can make more informed decisions, aiding in budgeting, forecasting, and strategic planning.

Here is why they are important:

  • Accuracy: They make sure every payroll transaction is recorded correctly in the general ledger, which is crucial for financial clarity and smarter decision-making.
  • Compliance: They help you stay compliant with financial regulations, reducing the risk of financial misstatements and potential compliance issues.
  • Audit trail: They provide a clear trail for all payroll-related financial activities, promoting transparency and accountability.
  • Financial reporting: They make it easier to prepare financial statements and reports, enhancing operational efficiency by automating data entry and minimizing errors.

Types of journal entry reports in BambooHR

  1. Standard journal entry report:  This is the default report that provides payroll transaction summaries. Once created, a journal entry report is automatically generated after each payroll cycle, following BambooHR's default GL mapping. BambooHR Payroll segments these reports in one of three ways:
    • Summary (No Segmentation)
    • Segmented by Division
    • Segmented by Department
  2. Custom journal entry report: Similar to the standard report, but allows for more flexibility. Users can segment by up to two groupings and define the segmentation per journal entry category (e.g., Wages, Employee Deductions, Employer Taxes).
  3. Accounting data transfer: While not a report type, users can select one of the above report types for seamless data transfer to accounting platforms.
    • BambooHR Payroll can send payrol information directly with QuickBooks Online! For more information about setting up the connection, check out this help guide.
    • BambooHR provides an export of your journal entry reports that you can import into your payroll solution.

What are GL codes?

GL (General Ledger) codes are unique identifiers assigned to financial accounts for tracking transactions. In BambooHR, when setting up a journal entry report, you can add GL codes for earnings, deductions, employer-paid taxes, and benefits. This ensures that all transactions are recorded in the right accounts, crucial for accurate financial reporting and compliance. For more information about setting up GL code in BambooHR, click here.

How do GL codes work with journal entry reports?

When you generate a journal entry report, each transaction is tagged with the appropriate GL code. This ensures that every financial movement is categorized correctly. Automating the assignment of GL codes in BambooHR Payroll can save time and reduce errors, freeing up your team to focus on more strategic tasks.

  • Categorization: GL codes help categorize transactions, making it easier to see how much is being spent or earned in each area, supporting better financial oversight.
  • Accuracy: By using GL codes, you ensure that all transactions are recorded in the right accounts, which is crucial for accurate financial reporting and compliance.
  • Efficiency: Automating these processes enhances operational efficiency, allowing your team to focus on strategic planning and decision-making.
When should I set up GL codes in BambooHR?

We recommend setting up GL codes after running your first payroll, but before running a journal entry report. Regardless if you have or have not used the tax, deduction, or pay type in an actual payroll run, entering all the GL Codes at once makes it so the journal entry report will always populate with the needed GL Codes the first time the report is run. Let's say your company pays sales commissions out once a quarter. Instead of waiting for that pay type to be used in payroll, adding that sales commission pay type in advance will eliminate time wasted running the journal entry report for that payroll, seeing the GL Code is missing, going back to settings to add the GL Code, and then re-running the journal entry report. 

When would I need BambooHR to create a custom journal entry report versus a custom general ledger report?

Please note that custom journal entry reports are included in BambooHR Payroll. If you need additional customization, we can create a custom general ledger report for an additional cost. To request a custom GL report*, click here.

*Custom fields to not sync to custo general ledger reports

Custom journal entry report: Ideal when multiple departments or locations require different expense allocations.

Segmentation options for custom journal entry reports:

  • Wages
  • Employee Deductions
  • Employee Taxes
  • Employer Deductions
  • Fees
  • Employer Taxes - Other Collections
  • Cash

Custom general ledger (GL) report: This is necessary if your accounting structure does not match BambooHR's default journal entry mapping or if you use third-party accounting software that requires a specific format. 

Segmentation Options for Custom General Ledger Reports:

  • Complex Accounting Structure (as compared to BambooHR's default journal entry mapping)
  • Custom Formatting (additional columns)
  • Detailed Memos
  • Custom Allocations (limit 20 employees, fixed)

Please note that if you choose to group your report by project, we will only report on the associated wages.

How can I make the most of my journal entry report in BambooHR?

  • Customize memo line mappings: Align your memos with your accounting structure for accurate classifications.
  • Utilize filtering options: Streamline account allocation. New enhancements are coming to improve filtering and applying codes to multiple lines for quicker setup.
  • Review reports before exporting: Ensure account accuracy to prevent reconciliation errors.

Hints and tips

  1. Automate where possible: Take advantage of automation features in BambooHR to generate journal entry reports and assign GL codes. This reduces manual errors and saves time, allowing your team to focus on more strategic tasks. Once you customize your journal entry reports in BambooHR Payroll, we will save the data so your groups and GL codes are saved for the next time!
  2. Regular reviews: Schedule regular reviews of your journal entry reports to catch any discrepancies early. Being proactive helps maintain accuracy and compliance, and it can also reveal trends that are useful for budgeting and forecasting!
  3. Stay organized with GL codes: Keep your GL code structure organized and up-to-date. Regularly review and update your GL codes to ensure they accurately reflect your current financial structure and reporting needs.
  4. Training and documentation: Ensure that your finance team is well-trained in using the payroll system and understands the importance of journal entry reports and GL codes. Maintain clear documentation for processes and procedures to ensure consistency and accuracy. For more information about training your payroll admins, check out this learning course!
  5. Leverage reporting tools: Use the reporting tools available in your payroll system to customize and filter journal entry reports. This can help you focus on specific areas of interest, such as department-specific expenses or unusual transactions.
  6. Integrate with an accounting software: If possible, integrate your payroll system with your accounting software. This seamless connection ensures that all financial data flows smoothly between systems, enhancing accuracy and efficiency.
  7. Consult with experts: Do not hesitate to consult with accounting or payroll experts if you are unsure about how to categorize certain transactions or if you need help optimizing your system. Their insights can be invaluable in ensuring compliance and efficiency.
Frequently asked questions

Why can't I see a journal entry report in my account?

This report will only become available once your payroll has been approved and paid out. If you're wondering where you are in this process, navigate to the Payroll tab, select the pay cycle you're running, and see if you have the option to reopen your payroll (this button would be in the same spot as the Start Payroll and Continue Payroll buttons). If this button is no longer there, your payroll run has been completed, and you should be able to create a journal entry report in your account.

Why does my custom journal entry report not include specific GL mappings by default?

When setting up a custom journal entry report, we are providing a structured outline. Since each company has its own unique payroll needs and data mapping, customization is required to ensure all of the data aligns properly.

Why is my journal entry report showing incorrect dates?

By default, BambooHR sends journal entries using the payroll pay date. The pay date is the actual date funds are disbursed to employees, and therefore, it is the date that reflects when the expense (payroll) occurred. This aligns with accrual accounting principles, where expenses are recorded when they are incurred, not when they are approved. If you need to change the date to the date the payroll was approved, you can do so in your exported report.

If you are using our QuickBooks Online (QBO) integration, you can change the date by opening QBO and viewing the journal entry.

Can I split expenses across different company areas?

Yes, using BambooHR's custom journal entry reports, you can allocate payroll expenses by department, location, and more!

What is the memo line for? Do I need to use it?

Memo lines define how payroll data maps to GL accounts, ensuring accurate accounting classifications. While not required, we highly recommend using them to ensure accurate data mapping