Currently in Manager.io, employee transactions are restricted to the Employee Clearing Account, which limits flexibility in applying standard accounting practices.
From an accounting perspective, employees should be treated as subledger entities, similar to customers (Accounts Receivable) and suppliers (Accounts Payable), allowing postings across multiple relevant accounts rather than a single forced control account.
Proposed Improvement:
Allow employees to function like customers/suppliers with the ability to:
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Post transactions to different accounts (e.g., Salaries Payable, Employee Loans, Advances)
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Use proper control accounts instead of only the Employee Clearing Account
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Enable account-to-account settlement (e.g., salary accrual vs payment vs loan adjustment)
Example Accounting Flow:
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Salary Accrual:
Dr Salaries Expense
Cr Salaries Payable (Employee-wise) -
Salary Payment:
Dr Salaries Payable
Cr Cash/Bank -
Loan Adjustment via Salary:
Dr Salaries Expense
Cr Employee Loan
Cr Salaries Payable
Rationale:
This structure:
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Aligns with standard accrual accounting principles
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Improves transparency and audit trail
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Enables proper tracking of employee-related liabilities and assets
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Eliminates reliance on a clearing account for all transactions
Conclusion:
Enhancing employee functionality to operate as a flexible subledger would significantly improve Manager.io’s capability for businesses requiring structured and professional accounting treatment of employee transactions.
Thank you for considering this enhancement.