Payroll is one of the most important areas of small business accounting.
It is also one of the easiest areas to get wrong.
Many business owners assume that if employees are paid correctly and payroll taxes are filed, the payroll accounting in QuickBooks Online must also be correct. Unfortunately, that is not always the case.
Payroll can be operationally correct but still posted incorrectly in the accounting system.
That means employees may receive the right net pay, payroll tax filings may be submitted, and payroll providers may process payments on time, while the QuickBooks Online financial statements still contain errors.
Payroll affects both the Profit & Loss Statement and the Balance Sheet. It impacts wage expense, payroll tax expense, employee withholdings, employer taxes, benefits, reimbursements, retirement contributions, payroll liabilities, cash flow, and tax reporting.
QuickBooks explains that payroll liabilities can include unpaid wages, withheld taxes, and benefits that still need to be paid, and that business owners must understand the difference between payroll expenses and liabilities for accurate accounting.
That distinction is critical.
A payroll expense is usually a cost of the business.
A payroll liability is an amount the business owes to someone else.
If those two categories are mixed together, the financial statements can become misleading.
Why Payroll Posting Matters in QuickBooks Online
Payroll is more than a cash withdrawal from the bank.
Every payroll run may include several accounting components:
- Gross wages
- Employee federal income tax withholding
- Employee Social Security and Medicare withholding
- Employer Social Security and Medicare taxes
- Federal unemployment tax
- State unemployment tax
- Health insurance deductions
- Retirement plan deductions
- Garnishments
- Employee reimbursements
- Payroll service fees
- Net pay
- Payroll tax payments
- Benefit payments
A single payroll withdrawal from the bank may represent only part of the payroll story.
If QuickBooks Online only records the cash withdrawal without separating the underlying payroll components, the financial statements may not accurately show labor cost, tax liabilities, or employee-related obligations.
That is why payroll posting should be reviewed as part of the monthly close.
Payroll Expense vs Payroll Liability
One of the most common payroll accounting problems is confusing expenses with liabilities.
Payroll expenses generally represent costs incurred by the business.
Examples include:
- Gross wages
- Employer payroll taxes
- Employer health insurance contributions
- Employer retirement contributions
- Payroll processing fees
- Workers’ compensation expenses
Payroll liabilities represent amounts owed but not yet paid.
Examples include:
- Federal income tax withheld from employees
- Employee Social Security and Medicare taxes withheld
- Employer payroll taxes owed
- Retirement contributions withheld but not yet remitted
- Health insurance deductions withheld from employees
- Garnishments payable
- Child support payable
- Accrued wages
- Payroll taxes due to federal or state agencies
QuickBooks notes that payroll liabilities arise during the payroll process and must be properly accounted for and reconciled.
If liabilities are posted as expenses, the Profit & Loss Statement may be overstated.
If expenses are posted as liabilities and never cleared, the Balance Sheet may contain inaccurate balances.
Both problems reduce the reliability of the financial statements.
Mistake #1: Recording Net Payroll as Wage Expense
This is one of the most common payroll posting errors.
A business owner sees a bank withdrawal for employee direct deposit and records that withdrawal as payroll expense.
For example:
Plain Text
Bank withdrawal: $8,500
Category: Payroll Expense
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The problem is that $8,500 may represent only net pay.
It does not include the full gross wages earned by employees.
A payroll run usually includes gross wages less employee withholdings.
For example:
Plain Text
Gross wages: $12,000
Employee taxes withheld: $2,400
Employee benefit deductions: $1,100
Net pay: $8,500
Show more lines
If only the $8,500 net pay is recorded as wage expense, payroll expense is understated.
The financial statements may show lower labor cost than the business actually incurred.
This can distort:
- Gross margin
- Net income
- Labor cost percentage
- Job costing
- Department reporting
- Tax planning
- Budgeting
- Cash flow analysis
Payroll accounting should usually begin with gross wages, not net pay.
Mistake #2: Recording Payroll Tax Payments as Payroll Tax Expense
Another common error occurs when payroll tax payments are recorded entirely as payroll tax expense.
For example, a business pays $3,500 to the IRS or a payroll provider.
The transaction is categorized as:
Plain Text
Payroll Tax Expense: $3,500
Show more lines
That may be wrong.
The payment may include both employer payroll taxes and employee taxes previously withheld.
Employee withholdings are not additional employer expenses.
They are amounts withheld from employees and owed to the tax authority.
The employer is responsible for remitting those amounts, but the withheld portion was already part of gross wages.
If the entire tax payment is posted as expense, payroll tax expense may be overstated.
The correct accounting often requires separating:
- Employer payroll tax expense
- Employee withholding liabilities
- Payroll tax liabilities payable
The IRS explains that employers generally use Form 941 to report federal income tax withholding, Social Security, and Medicare taxes, while Form 940 is used for federal unemployment tax. [irs.gov]
Because payroll tax filings include different types of obligations, payroll tax payments should be reviewed carefully before being posted entirely to expense.
Mistake #3: Payroll Liabilities Do Not Clear
Payroll liability accounts should generally clear when the related payments are made.
If a liability account keeps growing month after month, that may indicate a problem.
Common payroll liability accounts include:
- Federal withholding payable
- Social Security payable
- Medicare payable
- FUTA payable
- State withholding payable
- State unemployment payable
- Health insurance payable
- 401(k) payable
- Garnishment payable
- Child support payable
If those accounts do not clear, possible causes include:
- Payroll tax payments posted to expense instead of liability
- Benefit payments posted to expense instead of liability
- Duplicate payroll entries
- Missing payments
- Incorrect payroll mapping
- Journal entries posted incorrectly
- Payroll provider reports not reconciled
- Old liabilities never cleaned up
A Balance Sheet with old payroll liability balances can be a major warning sign.
It may mean the business owes money that has not been paid.
It may also mean the liabilities were paid but recorded incorrectly.
Either way, those balances need review.
Mistake #4: Duplicate Payroll Expenses
Duplicate payroll expense can happen when payroll is recorded in more than one way.
For example:
- The payroll provider syncs payroll journal entries into QuickBooks Online.
- The bank feed also shows payroll withdrawals.
- The bank feed withdrawals are categorized as payroll expense instead of matched or posted correctly.
Now payroll may be recorded twice.
This is common when businesses use payroll platforms such as:
- QuickBooks Payroll
- Gusto
- ADP
- Paychex
- Rippling
- Justworks
- Patriot
- OnPay
The payroll report may already post the expense, liabilities, and tax components.
If the bank feed is also categorized directly to wage expense or payroll tax expense, the Profit & Loss Statement may overstate payroll costs.
Duplicate payroll expense can make a business appear less profitable than it actually is.
Mistake #5: Payroll Mapping Is Incorrect
Payroll mapping determines how payroll data posts into QuickBooks Online.
If payroll mapping is wrong, every payroll run may create incorrect accounting entries.
Common mapping errors include:
- Gross wages posted to the wrong wage account
- Employer taxes posted to employee withholding accounts
- Employee deductions posted as expenses
- Benefits posted to payroll tax expense
- Reimbursements posted as wages
- Contractor payments posted to payroll
- Payroll fees posted to wages
- Department or class tracking missing
- Payroll liabilities posted to generic accounts
Payroll mapping should not be set once and ignored forever.
It should be reviewed when:
- New benefits are added
- Payroll providers change
- New wage categories are created
- Departments or locations are added
- Retirement plans begin
- Health insurance deductions change
- Bonuses or commissions are added
- Reimbursements are introduced
- Contractors become employees
- Employees work across departments or projects
A bad payroll mapping setup can create the same accounting error repeatedly.
Mistake #6: Employee Benefits Are Recorded Incorrectly
Employee benefits can create complicated accounting entries.
Examples include:
- Health insurance
- Dental insurance
- Vision insurance
- Life insurance
- Retirement contributions
- HSA contributions
- FSA deductions
- Commuter benefits
- Disability insurance
- Employee loan repayments
- Garnishments
Some benefits include both employee deductions and employer contributions.
For example, an employee may have health insurance deductions withheld from each paycheck, while the employer also pays part of the premium.
If both portions are posted to the same expense account without review, expenses and liabilities may be misstated.
A proper review should determine:
- What portion is employee-paid?
- What portion is employer-paid?
- Has the employee deduction been recorded as a liability?
- Has the employer contribution been recorded as an expense?
- Was the insurance bill paid correctly?
- Did the liability clear after payment?
- Are benefit accounts consistent month to month?
Benefits should not be treated as simple payroll expense without reviewing the underlying payroll reports.
Mistake #7: Reimbursements Are Posted as Wages
Employee reimbursements are another frequent source of payroll posting errors.
For example, an employee pays for business travel using a personal card and is reimbursed through payroll.
If the reimbursement is posted to wages, payroll expense may be overstated.
Depending on the reimbursement arrangement, the amount may need to be classified to the appropriate business expense category, such as:
- Travel
- Meals
- Mileage
- Office supplies
- Software
- Client expenses
- Professional fees
If reimbursements are included in wages incorrectly, several issues may arise:
- Wage expense is overstated.
- Operating expenses are understated.
- Job costing may be inaccurate.
- Department reporting may be distorted.
- Tax reporting may be affected.
- Employee compensation reports may be misleading.
Reimbursements should be reviewed separately from employee compensation.
Mistake #8: Contractor Payments Are Mixed With Payroll
Independent contractor payments should generally not be mixed with employee payroll.
Employees and contractors have different reporting, tax, and compliance implications.
Contractor payments may need to be tracked for Form 1099 reporting, while employee wages are reported through payroll tax filings and W-2 forms.
If contractor payments are posted to payroll wage accounts, the business may lose visibility into actual employee labor cost.
If employee wages are posted as contractor costs, payroll reports may not tie properly to the general ledger.
This can distort:
- Labor cost analysis
- 1099 reporting
- Payroll tax review
- Worker classification review
- Gross margin
- Department profitability
- Tax preparation
Contractor accounts and payroll accounts should be clearly separated in the Chart of Accounts.
Mistake #9: Payroll Is Not Reconciled to Payroll Reports
Payroll should be reconciled.
Many businesses reconcile bank accounts but never reconcile payroll.
That is a problem.
Payroll accounting should be compared to payroll provider reports.
Useful payroll reports may include:
- Payroll Summary
- Payroll Tax Liability Report
- Payroll Register
- Employee Earnings Report
- Deduction and Contribution Report
- Tax Payment Report
- Benefits Report
- General Ledger Payroll Report
The purpose of payroll reconciliation is to confirm that:
- Gross wages in QuickBooks match payroll reports.
- Employer payroll taxes are recorded correctly.
- Employee withholdings are posted to liabilities.
- Tax payments clear the correct liabilities.
- Benefit deductions are tracked correctly.
- Net pay agrees with bank withdrawals.
- Payroll fees are recorded separately.
- No duplicate entries exist.
- Payroll liabilities make sense at month-end.
Payroll reconciliation is one of the most important controls in a professional monthly close process.
Mistake #10: Payroll Tax Filings Do Not Tie to the Books
Payroll tax filings should be consistent with the accounting records.
The IRS states that employers generally file Form 941 quarterly to report federal income tax withholding, Social Security, and Medicare taxes, and generally file Form 940 annually for federal unemployment tax.
If QuickBooks payroll reports do not agree with payroll tax filings, the business may have a reporting problem.
Common causes include:
- Manual journal entries posted incorrectly
- Payroll provider sync errors
- Payroll tax payments recorded to expense instead of liability
- Voided payroll checks not reflected properly
- Prior period payroll corrections
- Manual payroll adjustments
- Multiple payroll systems used during the year
- Payroll migration errors
- Employee benefits mapped incorrectly
The books do not need to duplicate every payroll filing format, but the numbers should be reconcilable.
If the tax preparer cannot tie payroll expense and payroll liabilities to payroll reports, year-end cleanup may be necessary.
Mistake #11: Payroll Fees Are Mixed With Payroll Wages
Payroll providers often charge processing fees.
These fees are not employee wages.
Yet they are often posted to payroll expense.
For example:
Plain Text
Payroll provider withdrawal: $10,250
Show more lines
The amount may include:
- Net employee pay
- Payroll taxes
- Benefit deductions
- Payroll provider service fees
If the entire withdrawal is posted to wages or payroll taxes, the accounting is not accurate.
Payroll service fees should generally be tracked separately so the business can understand the cost of payroll administration.
This helps management analyze:
- Labor cost
- Administrative cost
- Payroll provider pricing
- Outsourcing cost
- Department profitability
- Operating expenses
Small classification errors can become material over time.
Mistake #12: Payroll Classes, Departments, or Locations Are Missing
For businesses with multiple teams, departments, locations, or projects, payroll should often be tracked in more detail.
Examples include:
- Restaurants with front-of-house and back-of-house payroll
- Construction companies tracking labor by project
- Agencies tracking payroll by client team
- Medical practices tracking payroll by provider or location
- Retail businesses tracking payroll by store
- Professional service firms tracking payroll by department
If all payroll is posted into one generic wage account, management may not understand where labor cost is being generated.
This can distort:
- Job profitability
- Department margins
- Location performance
- Staffing decisions
- Pricing decisions
- Budgeting
- Forecasting
QuickBooks Online can support class, location, customer, or project tracking depending on setup and subscription level.
But the reporting structure must be planned intentionally.
Mistake #13: Accrued Payroll Is Ignored
Payroll timing can create reporting issues.
For example, employees work during the last week of December but are paid in January.
If the business uses accrual-based reporting, those wages may need to be accrued in December because the employees performed the work in December.
If payroll is recorded only when paid, the expense may appear in January instead.
This can distort monthly or year-end financial statements.
Accrued payroll is especially relevant for:
- Month-end reporting
- Year-end tax planning
- Financial statement preparation
- CFO reporting
- Investor reporting
- Loan applications
- Businesses with material payroll
- Businesses using accrual accounting
Not every small business needs complex payroll accruals every month, but the issue should be reviewed when payroll timing materially affects results.
Mistake #14: Payroll Tax Deposits Are Not Reviewed for Compliance Timing
Payroll tax payments are not only accounting entries.
They are compliance obligations.
The IRS states that federal tax deposits generally must be made electronically by electronic funds transfer, and employers may use options such as EFTPS, a business tax account, Direct Pay for businesses, or other approved methods.
From a bookkeeping standpoint, payroll tax payments should be recorded accurately.
From a compliance standpoint, those payments should also be made on time.
A bookkeeper may not replace a payroll tax advisor, but professional bookkeeping can help identify red flags, such as:
- Payroll liabilities accumulating
- Tax payments missing
- Payments posted to the wrong period
- Payroll tax expense unusually high
- IRS or state agency payments that do not match payroll reports
- Payroll provider withdrawals not explained
- Tax penalties or interest appearing in the bank feed
Payroll tax timing issues can become expensive if not addressed promptly.
Mistake #15: Prior Payroll Corrections Are Not Reflected in QuickBooks
Payroll corrections happen.
Common examples include:
- Voided payroll checks
- Reissued paychecks
- Bonus corrections
- Reclassified wages
- Benefit deduction corrections
- Tax adjustments
- Manual checks
- Payroll reversals
- Prior period adjustments
- Employee repayment corrections
If payroll corrections are made in the payroll system but not reflected properly in QuickBooks Online, the accounting records may not agree with payroll reports.
This can create:
- Duplicate expenses
- Missing wage expense
- Incorrect liabilities
- Negative payroll accounts
- Incorrect employee balances
- Tax filing differences
- Year-end reconciliation problems
Whenever payroll is corrected, the accounting impact should be reviewed.
How Payroll Errors Distort the Profit & Loss Statement
Payroll posting errors can significantly distort the Profit & Loss Statement.
Common issues include:
- Wages understated because only net pay was recorded
- Wages overstated due to duplicate payroll entries
- Payroll taxes overstated because employee withholdings were recorded as employer expense
- Payroll fees mixed into wage expense
- Benefits posted inconsistently
- Reimbursements posted as wages
- Contractors mixed with employees
- Payroll expenses posted to the wrong departments or projects
This can cause business owners to misunderstand labor cost.
For many small businesses, payroll is one of the largest expenses.
If payroll is wrong, profitability analysis is usually wrong too.
How Payroll Errors Distort the Balance Sheet
Payroll errors also affect the Balance Sheet.
Common Balance Sheet issues include:
- Payroll tax liabilities that never clear
- Negative payroll liability accounts
- Benefit liabilities with old balances
- Retirement contributions not clearing
- Garnishment liabilities not cleared
- Accrued payroll missing
- Duplicate payroll liabilities
- Payroll advances or employee loans classified incorrectly
- Tax payments posted to expense instead of liability
A Balance Sheet should show what the business owns and owes.
If payroll liabilities are inaccurate, the Balance Sheet may misstate obligations.
This matters for tax preparation, financing, cash flow planning, and business valuation.
Why Bank Reconciliation Does Not Catch Payroll Errors
A bank reconciliation confirms that cash activity in QuickBooks matches the bank statement.
But payroll accounting can still be wrong even when the bank reconciles.
For example, the bank statement shows a payroll withdrawal of $8,500.
QuickBooks records an $8,500 payroll expense.
The bank reconciliation clears.
But if the $8,500 represents net pay rather than gross wages, the payroll expense is incomplete.
Similarly, a payroll tax payment may match the bank statement but be posted to the wrong account.
The reconciliation confirms the cash amount.
It does not confirm correct payroll accounting.
This is why payroll requires separate review.
Professional Payroll Review in QuickBooks Online
A professional QuickBooks payroll review may include:
1. Reviewing Payroll Provider Reports
Payroll reports should be compared to QuickBooks entries.
2. Reconciling Gross Wages
Gross wages should agree with payroll reports.
3. Reviewing Payroll Tax Expense
Employer payroll taxes should be separated from employee tax withholdings.
4. Reviewing Payroll Liabilities
Liability accounts should clear when payments are made.
5. Checking for Duplicate Payroll Entries
Bank feed activity should be reviewed to prevent duplicating payroll provider entries.
6. Reviewing Payroll Mapping
Payroll categories should post to the correct accounts.
7. Reviewing Benefits and Deductions
Employee deductions and employer contributions should be properly classified.
8. Separating Contractors From Employees
Contractor payments should not be mixed with employee payroll wages.
9. Reviewing Payroll Fees
Payroll provider fees should be tracked separately from employee compensation.
10. Reviewing Payroll by Class, Location, or Department
Where relevant, payroll should support management reporting.
11. Reviewing Payroll Tax Payments
Tax payments should reduce liabilities when applicable.
12. Reviewing Year-End Payroll Reports
Payroll reports should support W-2, 1099, Form 941, and Form 940 review where applicable.
Businesses Most Exposed to Payroll Posting Errors
Payroll posting errors are common in small businesses with:
- Multiple employees
- Hourly workers
- Bonuses or commissions
- Multiple payroll providers
- Employee benefits
- Retirement plans
- Health insurance deductions
- Workers’ compensation
- Contractors and employees
- Multiple locations
- Job costing needs
- Department reporting
- Manual payroll adjustments
- Payroll migrations
- High employee turnover
- Mixed owner payroll and distributions
The more complex payroll becomes, the more important payroll accounting review becomes.
Signs Your QuickBooks Payroll Needs Cleanup
Your QuickBooks Online payroll may need review if:
- Payroll liabilities do not clear.
- Payroll tax expense seems too high.
- Wage expense seems too low.
- Net payroll is posted as total payroll expense.
- Payroll tax payments are posted entirely to expense.
- Payroll provider entries and bank feed transactions appear duplicated.
- Benefit deductions are unclear.
- Contractor payments are mixed with wages.
- Payroll fees are included in wage expense.
- Payroll reports do not match QuickBooks.
- Form 941 reports do not tie to payroll records.
- Payroll accounts have negative balances.
- Old payroll liabilities remain on the Balance Sheet.
- Payroll by department or location is missing.
- The business changed payroll providers.
- The business is preparing for tax season.
If any of these issues exist, payroll accounting may be distorting the financial statements.
Example: Net Payroll Posted as Total Wage Expense
Assume a business runs payroll with the following details:
Plain Text
Gross wages: $20,000
Employee tax withholding: $4,000
Employee benefit deductions: $1,000
Net pay: $15,000
Show more lines
The bank feed shows a $15,000 withdrawal.
If QuickBooks records only the $15,000 as wage expense, payroll expense is understated by $5,000.
The financial statements do not reflect the full cost of employee compensation.
This can make the business appear more profitable than it really is.
Example: Payroll Tax Payment Posted Entirely to Expense
Assume a business pays $6,000 in payroll taxes.
The amount includes:
Plain Text
Employee withholdings: $3,800
Employer payroll taxes: $2,200
Total payment: $6,000
Show more lines
If the full $6,000 is posted to payroll tax expense, employer tax expense is overstated.
The employee withholding portion should generally reduce payroll liabilities.
This mistake affects both the Profit & Loss Statement and the Balance Sheet.
Example: Duplicate Payroll From Bank Feed
Assume a payroll provider posts a payroll journal entry into QuickBooks Online.
The journal entry records:
- Wages
- Employer taxes
- Employee withholdings
- Payroll liabilities
- Net pay
Then the bank feed shows the net pay withdrawal.
If the bank feed withdrawal is also categorized as payroll expense, wages may be duplicated.
The bank account may reconcile, but expenses are overstated.
This is why bank feed payroll transactions should be reviewed carefully.
Why Payroll Posting Matters for Tax Preparation
Payroll errors can create significant tax-season issues.
Common problems include:
- Payroll expense does not match payroll reports
- Payroll tax expense is overstated
- Payroll liabilities remain uncleared
- Employee withholdings are posted incorrectly
- Benefits are classified inconsistently
- Contractors and employees are mixed
- Payroll tax payments do not tie to filings
- W-2 totals are difficult to reconcile
- 1099 contractor payments are incomplete
- Payroll corrections are missing
The IRS states that employers must generally file employment tax forms such as Form 941 quarterly and Form 940 annually where applicable, and employment tax forms may be e-filed.
Clean payroll accounting helps the tax preparer reconcile payroll reports to the books and reduces year-end cleanup.
Why Payroll Posting Matters for Business Decisions
Payroll is often one of the largest cost categories in a small business.
If payroll is not posted correctly, the owner may misunderstand:
- True labor cost
- Profitability
- Gross margin
- Department margins
- Project profitability
- Cash flow
- Employee cost per revenue dollar
- Cost of benefits
- Payroll tax burden
- Owner compensation
- Hiring capacity
A business may think it can afford to hire when payroll costs are understated.
Another business may think it is less profitable than reality because payroll expense was duplicated.
Reliable payroll accounting is essential for informed decision-making.
Final Thoughts
Payroll posting errors in QuickBooks Online can quietly distort financial statements.
Employees may be paid correctly, and payroll tax filings may be completed, while QuickBooks still shows inaccurate payroll expenses, liabilities, or Balance Sheet balances.
The most common issues include recording net pay as wage expense, posting payroll tax payments entirely to expense, failing to clear payroll liabilities, duplicating payroll entries, using incorrect payroll mapping, and mixing employee wages with reimbursements or contractor payments.
Payroll should not be treated as a simple bank feed transaction.
It should be reconciled to payroll reports, reviewed against liability accounts, and analyzed as part of the monthly close process.
For small business owners, accurate payroll accounting provides a clearer picture of labor cost, profitability, compliance exposure, and cash flow.
Need Help Reviewing Payroll Posting in QuickBooks Online?
Smart Bookkeeping Services helps small businesses review QuickBooks Online payroll postings, reconcile payroll liabilities, identify duplicate payroll expenses, clean up Balance Sheet accounts, and produce financial statements that business owners can trust.
If your payroll expenses, payroll tax accounts, or payroll liabilities do not make sense, contact Smart Bookkeeping Services for a professional QuickBooks Online review.
FAQ
Why does payroll look wrong in QuickBooks Online?
Payroll may look wrong if QuickBooks records only net pay, duplicates payroll provider entries, maps payroll categories incorrectly, or posts payroll tax payments to the wrong accounts.
What are payroll liabilities in QuickBooks Online?
Payroll liabilities are amounts the business owes after running payroll, such as employee tax withholdings, employer payroll taxes, retirement deductions, benefit deductions, garnishments, or accrued wages.
Should payroll tax payments be recorded as expenses?
Not always. Payroll tax payments may include both employer taxes and employee taxes withheld from paychecks. Employee withholdings usually reduce payroll liabilities rather than creating additional employer expense.
Can payroll be duplicated in QuickBooks Online?
Yes. Duplicate payroll can happen when a payroll provider syncs entries into QuickBooks and bank feed withdrawals are also categorized as payroll expense.
Why do payroll liabilities stay on the Balance Sheet?
Payroll liabilities may remain on the Balance Sheet if payments were posted to the wrong accounts, benefits were not cleared, tax payments were not matched, or payroll entries were duplicated or incomplete.
Should payroll be reconciled every month?
Yes. Payroll should be reconciled to payroll provider reports, bank activity, payroll tax payments, benefit deductions, and liability accounts as part of the monthly close process.