Hi All,
Need some advice on how to reslove the following problem.
I've just started a new job/new firm, and there payroll is run 4 weekly e.g. 10/11/14 to 07/12/14 (P1), 08/12/14 to 04/01/15 (P2) and so on.
When preparing the monthly accounts, the firm accrues additional wages for until end of the month e.g for Jan accounts we accrued 26 days (P2/28*26).
This means in Jan accounts 26 days accrued are really based mainly of Dec (P1) wage, not really reflecting Jan wages.
CEO uses this informationm and tells managers to up their game if it is too high that month, as he sees it as Jan wages. However, the manager is confused as the hours fell in Jan not realising this accrual was based on Dec (P1) figures.
I hope the above makes sense.
Now I wanted to know how I can reslove this? and How do I exaplain this to the CEO nicely.
Also going forward whats the best way to tackle this i.e. start using hours with managers to track progress and report back to CEO.
Thanks
Yaz
Need some advice on how to reslove the following problem.
I've just started a new job/new firm, and there payroll is run 4 weekly e.g. 10/11/14 to 07/12/14 (P1), 08/12/14 to 04/01/15 (P2) and so on.
When preparing the monthly accounts, the firm accrues additional wages for until end of the month e.g for Jan accounts we accrued 26 days (P2/28*26).
This means in Jan accounts 26 days accrued are really based mainly of Dec (P1) wage, not really reflecting Jan wages.
CEO uses this informationm and tells managers to up their game if it is too high that month, as he sees it as Jan wages. However, the manager is confused as the hours fell in Jan not realising this accrual was based on Dec (P1) figures.
I hope the above makes sense.
Now I wanted to know how I can reslove this? and How do I exaplain this to the CEO nicely.
Also going forward whats the best way to tackle this i.e. start using hours with managers to track progress and report back to CEO.
Thanks
Yaz