Traditional usage of software will require you to enter the same information repeatedly. Some information may be needed by more than one system. Take payroll and accounting software for example. At some point, they will need to talk to each other. Employee salary details need to be entered in the payroll software, but your accounting software and tax software need it too. Without some form of integration, payroll information will need to be entered manually into the accounting system. However, copying the figures from the payroll software into your general ledger leaves too much room for error, while also adding to the hours lost to manual processes. You may also need to make journal entries to fix mistakes.
By switching to integrated systems, you can provide the information once, significantly improving the efficiency of your business. Integrated payroll and accounting software essentially allow the two systems to talk to each other to automate tedious, time-consuming tasks. By using software packages that can communicate with each other, employers will be able to increase efficiency, simplify operations, save time, avoid duplication of efforts and reduce the possibility of manual processing errors.
BrightPay’s payroll journal feature allows users to create wage journals from finalised pay periods so that they can be added into various accounting packages. With BrightPay, there are two methods that can be used to send the journals to the accounting package.
The payroll journal export facility currently supports five accounts packages, where users can export file formats with default nominal ledger code mappings included. The five accounting softwares currently catered for by BrightPay are Exact, Kashflow, Quickbooks (desktop), Sage and Xero.
Each payroll journal file is customised to the individual accounting software for easy upload. The built-in mappings can be tailored to meet your own requirements, or you can create your own nominal ledger mapping from scratch if required. A 'generic' journal option is also available for those who use other accounting software packages. Generic payroll journals can be saved and added to your journal listing for future use.
BrightPay also includes API integration with some accounting packages. With this direct integration, users will be able to directly send the payroll journal to the accounting package from within BrightPay. This accounts software integration eliminates the need to export the CSV file from the payroll software and import it into the accounting system, further saving time and reducing the risk of errors. BrightPay includes direct API integration with Xero, Sage One and Quickbooks Online.
In BrightPay, each payroll journal file is customised to the individual accounting software provider, with compatible files and built-in nominal ledger mapping. Essentially, this mapping tells the payroll where things get posted to in the accounting system. For example, you may have a nominal ledger account in your accounts program called ‘Wages and Salaries’ and this is where you may want to post the wages and salaries costs from the payroll. If there are directors, you may want to see their costs separated out into another account, possibly called ‘Directors Pay’. The taxes deducted will usually be posted to a liability account, possibly called ‘Payroll Taxes’. Other payroll items may also require mapping e.g. employer pension costs or pension liabilities outstanding.
With BrightPay, users can decide if they wish to include individual journal records for each employee, or if they want to merge the employee records into total records for each unique payment date. There is also the option to specify circumstances where amounts are to be mapped to alternate nominal account codes (e.g. depending on period type, directorship, departments, specific rates/additions/deductions, etc.).
BrightPay has designed various step-by-step tutorial guides to help you with using the API integration to send your payroll journal directly to Xero, Sage and Quickbooks.
We also have step-by-step guides to help you with creating and exporting your payroll journal via CSV file, ready for upload into your accounting software.
Book an online demo of BrightPay today to see how the accounts integration features can benefit your business.