I would appreciate some help with my new client and my payroll journals using Xero.
(1) I have a client who does a lot of DBS checks and their previous bookkeeper recorded these as a payroll deduction under "948 - Other Deductions".
I have been advised by another member that they have the DBS deductions as a form of income (loan), because the employee pays. Then the payments to DBS as a Cost of Sales.
(2) There are also a number of advanced payments made to the employees and I have been advised to open a nominal code for "Employee Loans" or similar to track these.
I would welcome any advice please as to how I should journal these amounts.