Payroll journals. They’re important, aren’t they?
After all, they record the financial impact of all payroll processes.
For finance departments, payroll journals are particularly important as they provide all the details about how much a company is typically spending on its employees each month.
However, there is often a problem.
While payroll journals hold information crucial to running any successful business, manually extracting the data from payroll software and then transferring it to accounting software is often much easier said than done.
Options for integrating payroll journals with accounting software
👉 Integrated payroll and accounting software
Pros – Changes affecting payroll are automatically reflected in the accounting software.
Cons – Often, one software is better than the other—e.g. accounting is more sophisticated than payroll. Alternatively, both can be fairly standard with neither addressing a company’s specific needs.
👉 No integrations
Pros – More flexibility in choosing individual payroll and accounting software.
Cons – Users are required to build the journals themselves to be compatible with the accounting software.
👉 Supported integrations
Pros – Specialised payroll software that is set up to integrate payroll journals with all major accounting software.
Cons – The transfer of data can be manual.
This is an issue Pauline has faced numerous times in the past with her employer, Hooli.
Hooli’s finance manager used to constantly badger her about how the payroll journals she extracted from the company’s payroll software would not integrate with the accounting software they use.
This long-standing problem saw Hooli previously experiment with an integrated payroll and accounting provider.
While this method did mean that payroll journals and accounting software were in perfect sync, for Pauline, running payroll each month became extremely complicated.
Thankfully, Pauline came across PayFit.
PayFit’s customer support team helped successfully integrate Hooli's payroll accounts on PayFit.
Hooli's finance team could then download payroll journals and seamlessly upload them to the accounting software.
The switch to PayFit helped save time too. Without the need to tweak exports, the time spent on integrating payroll journals reduced by well over 80%.
Through the use of specialised payroll software, Pauline and her colleagues at Hooli have found a solution that can both support their payroll needs and successfully integrate with their preferred accounting software.
Which accounting software can be used?
Through PayFit, you can benefit from the automated generation of CSV exports that can be directly imported on Xero, QuickBooks, Sage 50cloud and NetSuite.
Interested in finding out how PayFit can support your payroll needs? Why not book a demo with one of our payroll specialists?
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