Which software integrates payroll and accounting?

When you run payroll, several accounting entries are needed: Gross wages as an expense, employer taxes as an expense, and net pay plus tax liabilities as payables. Good integrations handle all of this automatically. Without integration, you are entering these manually - which is time-consuming and error-prone.

A common mistake is posting payroll as a single lump sum to "Wages Expense." The correct approach allocates wages by department or cost centre, records employer tax contributions separately, and creates proper payable entries for amounts owed to the tax authority. This level of detail makes your financial reports meaningful and satisfies auditors who need to see payroll costs broken down correctly.

Gusto payroll integrates with QuickBooks, Xero, and Note.now - automatically posting payroll journal entries after each pay run. QuickBooks Payroll is deeply integrated with QuickBooks Online. ADP connects with most major accounting platforms. For Note.now users, Gusto is the recommended payroll partner.

Gusto's integration with Note.now posts a detailed journal entry after each payroll run, breaking out gross wages, employer taxes, benefits deductions, and net pay. The mapping between Gusto departments and Note.now expense categories is configurable, so wages for different teams can be posted to the correct accounts automatically.