what is the difference between "cost of labour" and "staff costs"?

I am trying to set up my chart of accounts and don't know which to use when entering staff wages

Answer

Hi gateway6975

Your chart of accounts is your treasure map. 

The Cost of labour is for you to track the cost of paying employees to produce products or supply services. This includes all of your employment costs, including meal and transportation (if applicable). This account is also available as a Cost of Sales (COS) account.

The Staff costs is for you to track the cost associated with your employees, such as benefits (executive pension schemes, healthcare or car allowances) or parties. 

While we do not make recommendations on how best to manage your books, we do have default account categories created like Payroll Expenses that you can choose from in the Chart of Accounts so you can track the salaries and wages of your employees.

We still recommend you consult with your accountant to give you the business and legal advice that works best for your business.

I hope that I was able to answer your accounting questions for today, gateway6975. You can always come back here in the Community if you have any other queries in the future!

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IntuitMaryF , Community Support Specialist
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