104 Enrolled
2 Hours (On-Demand)
CPE Not Available
Instructor for this course

Critical areas of responsibility for a bookkeeper to be engaged with are the management and recording of payroll as well as business expenditures.  Payroll is a high risk area that impacts not only the company but also the employees, while expenditures are a pivotal component of how the organization operates and can manage its profits. 

First, this course reviews the many processes involved in payroll management including timekeeping, payroll withholdings, and calculating and executing pay.  An employer, regardless of number of workers, must maintain all records pertaining to payroll taxes (income tax withholding, social security tax and federal unemployment tax). Twenty different kinds of employment records must be kept just to satisfy federal requirements.  As you can see, this is a critical and complex area for the bookkeeper.

Next, this course covers the concept of expense management and the many categories of expense including fixed, variable and periodic. Business expenses are costs incurred in the ordinary course of business. They apply to companies of all sizes. On the income statement, business expenses are subtracted from revenue to arrive at a business's taxable net income. It is important to ensure that expenses incurred are “valid” business expenses to be deductible for tax purposes.

This course compliments the other Bookkeeping Basic courses on the Illumeo.com platform.  

Whether you are a business owner or want to develop the skill of bookkeeping to begin a career, there are critical accounting and bookkeeping concepts that are important to learn. These courses have been developed by a CPA who has both small and large business accounting experience and background. The full curriculum of bookkeeping courses will provide you with the ultimate foundation to a career as a bookkeeper.  

NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation to a career as a bookkeeper. 

Learning Objectives

  • Explore the payroll process.
  • Discover types of payroll taxes and methods of calculation.
  • Identify payroll risks to avoid.
  • Explore business expenses and deductibility.
Last updated/reviewed: June 17, 2021

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesProfessional Bookkeeping Certification

  1. Bookkeeping: Terminology and Process Execution
  2. Bookkeeping: Debits And Credits
  3. Bookkeeping: Cash vs. Accrual
  4. Bookkeeping: Payroll And Expenses
  5. Bookkeeping: Legal Entity And Chart Of Accounts
  6. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  7. Bookkeeping: Responsibilities
  8. Bookkeeping: Fixed assets and inventory
  9. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  10. Management Internal Control Essentials
  11. GAAP Principles, Assumptions and Considerations
  12. GAAP Presentation of Financial Statements
  13. Bookkeeping Basics – Case Study Scenario
  14. Useful Bookkeeping Tools

15 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Accounting For Not-for-Profit Entities
  2. Accounting for Not-for-Profit Entities
  3. Identifying and Implementing the Proper Balance of Internal Controls
  4. Segregation of Duties for Core Business Processes
  5. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  6. Bookkeeping: Payroll And Expenses
  7. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  8. Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
  9. Management Internal Control Essentials
  10. Financial Statement Essentials for Not-for-Profits
  11. Not-for-Profit Financial Statements Part 2
  12. Not for Profit Financials - Focus on Net Assets
  13. Cyber Risk in Small-Medium Entities
  14. Fraud in Small-Medium Entities
  15. Not-For-Profit Accountability and Responsibility

18 Reviews (51 ratings)Reviews

Member's Profile
I learned a lot from this course about the payroll related bookkeeping and the deductible business expenses. I also learned the FICA and FUTA, and other withholding a business owner is responsible, such as the federal and state income tax withholding, worker's compensation, and the employee contribution to the health insurance premium and the retirement plan.
Anonymous Author
This course was a really good review AND it introduced new information for me. I really appreciated the list of different employment records that should be maintained as well as coverage of risks. The typo of "FUTU" instead of FUTA may be confusing to someone new to the material.
Anonymous Author
This section was very informative both the payroll and allowable expenses. I also like the fact that it is honest about the varying areas and to check with a professional for additional information. Real honest and smart process
Member's Profile
Understanding of taxes and expenses was achieved in this course. the importance of keeping good records. But I know that i would rather have my clients hire a payroll agency for sure!!
Anonymous Author
Had all of the necessary information, but may not have been completely accurate, also in the review questions it is supposed to say "FUTA" not "FUTU" - it only confused me for a second.
Member's Profile
There is a lot of information in this course. Helpful information if you are the one pputting ogether new hire packets an dunderstanding the items needed.
Member's Profile
This course provided the basis for understanding the fundamentals of payroll functions and the IRS requirement for labor tax rates and other deductions.
Anonymous Author
Great course regarding overall review of Payroll taxes as well as bookkeeping procedures when understanding what is tax deductible.
Anonymous Author
Good overview of the process of payroll, associated taxes, and mistakes to avoid. Section about expenses was concise but thorough.
Member's Profile
This was a great refresher course on Payroll Accounting. This course would be beneficial for bookkeepers and payroll accountants.
Anonymous Author
Great information, the charts are especially helpful. I watched the lesson twice and was able to really understand everything.
Member's Profile
this course was ok.. I feel that the material was very basic, although the exam was more difficult than I expected
Anonymous Author
Great overview on Payroll considering it is such a critical and important area in any business.
Member's Profile
Very Informative. Learned a lot about the rules and regulations of tracking expenses
Member's Profile
Very informative stuff... starting to understand the whole picture of the work...
Member's Profile
lots of good information and illustrations. The lists are worth keeping for review
Anonymous Author
Course material was thorough and presented in an easy to comprehend manner.
Member's Profile
A very complicated process explained in a clear, understandable way.


Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  2:10Introduction to Bookkeeping Basics – Payroll and Expenses
  11:13Payroll Continued
  11:57Payroll Taxes
  13:50Payroll Taxes Continued
  3:44Payroll Risks to Avoid
  6:39Business Expenses
  17:26Allowable Deductible Business Expenses
  1:20:51Bookkeeping Basics – Payroll and Expenses
  PDFSlides: Bookkeeping Basics – Payroll and Expenses
  PDFBookkeeping Basics – Payroll and Expenses Glossary/Index