Every organization keeps a record of all its financial transactions. The set of transactions related to payroll is called payroll accounting.
Payroll accounting is no different from other accounting principles. It is split into two parts – (a) booking of the actual salary expense and (b) creating provisional or accrual entries in the books of accounts.
Salary is one of the significant operating costs that have to be reported in the books of accounts. To ensure an efficient Payroll Management process, all the salary data is fed accurately into the accounting or ERP system.