Money is not the only thing you’ll need to track. Most companies use the payroll system to manage employee time off for vacation time, sick time, personal time, and family leaves.
During month-end close, you should be certain that employee time records are accurately updated. In addition to noting hours taken off, you’ll need to update any accrual of additional hours. Some companies set up a time pool at the beginning of the year and allow employees to use that pool from day one. Most companies set up a time-accrual system and add hours to an employee’s records at the end of each month worked.
For example, let’s assume a company allows 12 days a year for vacation. This is easy to calculate because it means an employee earns ...