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Payroll Software: Why integration with accounting packages is a must

27th Jan 2020
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brightpay
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Undoubtedly, many employers dread the repetitive and time-consuming task of manually entering the same information into more than one system. With the traditional usage of software, at some point, they will need to talk to each other. Take payroll and accounting software for example. 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. Unfortunately, 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.

With BrightPay’s payroll journal integration feature, users can seamlessly create wage journals from finalised pay periods and instantly send them into various accounting packages. With this direct API integration, users will be able to directly send the payroll journal to the accounting package from within BrightPay. This accounts software integration eliminates the manual workload and risk of errors associated with double-entry of data. BrightPay includes direct API integration with Xero, Sage One and Quickbooks Online, with more coming soon. 

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 accounting 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).

Do business efficiently and easily, and leave the complexity to the software. Don’t delay on automating your payroll system, and avoid the potential for errors and the hours lost to manual processes. 

Book an online demo of BrightPay today to see how the accounts integration features can benefit your business.

Book an online demo of BrightPay today to see how the accounts integration features can benefit your business.

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