Payroll accounting is more than paying salaries. Here is how gross pay becomes accurate journal entries.
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Payroll accounting is more than paying salaries. Here is how gross pay becomes accurate journal entries.

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A clear guide to adjusting and closing entries — what they are, the types of adjusting entries (accruals, deferrals, depreciation), what closing entries do, and why both ensure accurate financial statements.
🚀 TimeKeeping.IO Release Update — Accruals Module Now Live (March 23rd) On March 23rd, TimeKeeping.IO hit a major milestone in our mission to make time, attendance, and workforce management beautifully simple. After months of engineering, validation logic, and real‑world testing across multiple industries, our Accruals module is officially complete and live in production. This release isn’t just another feature—it’s a foundational upgrade to how organizations track, earn, and manage employee time. What’s New in the Accruals module Our new accrual engine is built for accuracy, transparency, and compliance from day one:
Flexible earning rules for PTO, sick time, vacation, and custom policies
Automatic validation that catches inconsistencies before they reach payroll
Clear employee visibility into balances, usage, and projected earnings
Manager‑friendly oversight with real‑time updates and audit‑ready logs Whether your team runs weekly, bi‑weekly, or monthly pay periods, the accruals module adapts to your rules—not the other way around. Why This Matters Accruals are one of the most error‑prone parts of workforce management. Legacy systems often treat them as an afterthought. We built ours as a first‑class citizen of the platform—precise, predictable, and fully integrated with our timecard engine. This release brings TimeKeeping.IO one step closer to our vision: A modern, intuitive timekeeping system that handles the complexity so your team doesn’t have to. What’s Next With accruals complete, we’re already moving toward the next wave of enhancements—performance, more API endpoints for integration with your payroll or scheduling, and deeper compliance intelligence.
Earnings Quality Monitor
Earlier today, Bloomberg published an article citing UBS research, that effectively stated that earnings quality as measured by the comparison of cashflow from operations versus net income is growing and, thus, deteriorating. This work is near and dear to our hearts at Calcbench as some of us cut our teeth by following the work of Richard Sloan on this topic!
So, we set out to show people just how efficiently you can build models like this using Calcbench. It also illustrates the importance of having a strategy to obtain fundamental financial data.
Without further ado, here is a link to a spreadsheet that does an exercise similar to that in the Bloomberg article. In short, we collected Net Income, Cashflow from Operations and Depreciation & Amortization from our database using our Excel Add-In. Next, we subtracted Depreciation from Net Income and then compared that to Cashflow from Operations.
We summarized our work in two charts. In both cases, the universe is the S&P500 ex financials.
It confirms the UBS work (phew). In the chart below, for 2022, the 11.2% of our firms, had Net Income greater than Cashflow from Operations. In the lower chart, notice that the green bars ( CFO minus Net Income) are above zero for every year since 2016. Our study included more firms because we used data that became available through yesterday (February 28, 2023).
The link to our spreadsheet is here. Please note that the spreadsheet comes with embedded Calcbench formulae and will not work without a subscription. For a Calcbench trial subscription, please visit https://www.calcbench.com/join
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Principles of Accounting: Accruals and Financial Statements
Principles of Accounting: Accruals and Financial Statements
Accruals are amounts owing at the end of the period when they are due
For this reason they are sometimes known as owings
There are two types of owings in busines:
Owed income which is accrued income at the end of the period for example when the business has not yet received rent receivable by the end of the period
Owed expenses which are accrued expenses at the end of the period for example when…
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