Alan is recording payroll that was processed outside of QuickBooks.

To address the situation where Alan is recording payroll that was processed outside of QuickBooks, here are some general steps he can follow:

Step 1: Define the Problem

Alan needs to accurately record payroll transactions in QuickBooks that were processed using an external system.

Step 2: Break Down the Problem

1. Identify Payroll Components: Determine all components of the payroll, such as gross wages, taxes, deductions, and net pay.
2. Gather Payroll Data: Collect all necessary payroll data from the external system, including employee details and payment amounts.
3. Determine Recording Method: Decide whether to enter payroll as a journal entry or use the QuickBooks payroll feature.

Step 3: Apply Relevant Concepts

• Journal Entry Method: If using journal entries, Alan should create entries for each payroll component, ensuring debits and credits are balanced.
• QuickBooks Payroll Feature: If using QuickBooks payroll, Alan should enter the data into the payroll module, ensuring all details match the external records.

Step 4: Analysis, Verify and Summarize

• Verify Entries: Double-check all entries for accuracy against the external payroll records.
• Reconcile Accounts: Ensure that the payroll accounts in QuickBooks reconcile with bank statements and external payroll reports.

Final Answer

Alan should choose the appropriate method to record payroll in QuickBooks, ensuring all data is accurate and reconciled with external records. This will maintain accurate financial records and facilitate future audits or reviews.