Hello guys! I have a dilemma that I wish to share with you
to get your perspective; am also afraid it may look foolish so please excuse my
ignorance - am quite new to accounting.
My company employs 15 people directly. However, from time to
time, depending on jobs availability, we are forced to contract casuals who
are often different for each occasion. My dilemma arises when paying them for
Unlike with employees where you can create payroll, with
casuals, it would be impossible because they could sometimes amount to 20 or
so, and it becomes untenable, even unthinkable, that I should clutter my
employees tab by including them, especially when they probably wont be contracted
for the next job.
Of course, I could decide to pay each of them separately
from a cash account. The problem, however, is the unavailability of a matching
expense item (in this case Wages & salaries) from the Account drop down tab
during payment from a cash account. The Wages & salaries account can only
be activated through payroll where the liability is shifted to Employee
Clearing account to be cleared from a cash account.
My question, therefore, is whether or not I will be correct
to create a new expense Item for use when paying casuals directly from a cash
account, which means they will not feature as part of my company’s employee
account as set up in Manager. Your input is highly appreciated.