Subscribing to both Accounting and Payroll saves time when you pay employees. You can post salary details straight to Accounting.

We'll tell you:

• How to turn on the integration with Accounting
• How to choose whether to create a bank payment for your net wages or enter this as a liability

 NOTE: Payroll and accounts need to have been signed up for using the same email address in order to link them.  

How the integration with Accounting works

The journal is records using the default ledger accounts set up in Accounting.

If you want to record the journal using your own ledger accounts, you may need to always create a manual journal. You may need to do this if you want to run more detailed reporting or want to use a different set of ledger accounts.

If you want to watch a video that explains how to set up the integration with Accounting, you can do so below:

Set up the integration with Accounting

1. Open Accounting.
2. From Settings, select Payroll & Accounting Integration Settings.
3. Select Allow Payroll to create journals in Accounting.
4. Choose whether to record your net wages as bank payment or as a liability.
5. Select Save.

You’ve now integrated your payroll with Accounting. The next time you complete your pay run, the salary information posts to your accounts.

Record net wages as a bank payment

As you'll actually be paying money to your employees, save time by recording this bank payment automatically when you complete your pay run.

Use this when you pay your employees from the same bank account and are happy to show this as a single payment, rather as an individual amounts to your employees.

• Select Post employee net wages to the default bank account and choose the bank the payment will come out of

•  NOTE: This step is UK only: Choose Record Payment / EPS from the Summary page. This creates the corresponding bank payment in Accounting. Don't forget you still need to actually send the money to HMRC/Revenue!

•  NOTE: This step is IE only:  Choose Record Payment from the Summary page. This creates the corresponding bank payment in Accounting. Don't forget you still need to actually send the money to Revenue!

If you use bank feeds

Remember that the bank payment will also import from your bank.

To make sure you don't duplicate this payment, make sure you delete it from your bank feeds import.

To discard a transaction, select the cross to the left of the transaction.

Record net wages as a liability

You may not want to automate recording the bank payment. You can record your total net wages against the Net Wages ledger account. Do this by choosing Post employee net wages to liability account.

You will also need to:

• Enter details of the bank payment to show when you have paid your employees
• Enter details of the payment made to HMRC/Revenue

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• Export the report to import into your Sage 50 accounts program. Read Salary Journals
• Read how salary details are recorded in Accounting and details of the other transactions you may need to create
• Read how to create a salary journal without using the integration