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Freshbooks integration

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    Agent 103

    Updated Feb 13, 2014

    FreshBooks and Payroll now provide you with an easy, integrated way to manage your staff's time and payroll processing. FreshBooks is the "#1 Cloud Accounting Solution Designed for Small Business Owners". Payroll provides robust payroll and payment processing. Together, you can accurately record the time your employees work, process their payroll and record these expenses in FreshBooks.

    To get started, login to your Payroll account and go to SETTINGS -> ADD-ONS. Under the Accounting or Time Keeping tabs you'll find FreshBooks

     

    Click ENABLE and you'll be asked to enter your FreshBooks account address:

    FreshBooks-enter-URL.png

    You'll then be taken to the FreshBooks site to validate your account. You'll need to give permission for Payroll to access your time records. You'll only need to do this once.

     

    Once authenticated, you'll be taken back to your payroll profile where you can map your FreshBooks expense codes to your payroll:

    FreshBooks-connected.png

    Select Continue Setup and you'll see a list of the Payroll expense descriptions and a list of your FreshBooks expense codes. Use the dropdown boxes to select the correct FreshBooks expense code to match the Payroll description. For example "Payroll Wages" could be mapped to your FreshBooks code "Wages". Make sure you match each line item to a FreshBooks expense code and click SAVE.

    FreshBooks-account-mapping.png

    That's it - you've connected the services. Now you can easily import your time entries from FreshBooks into Payroll for payroll processing as well as export expenses back to FreshBooks.

     

    Importing time sheets from FreshBooks

    Start a payrun and on the TIMESHEETS step, click the IMPORT link.

     

    The system will connect with FreshBooks and grab any time entries that match the payroll period you are processing. You'll see a list of employees and a list of staff from FreshBooks. We've matched employee names but you can override the automated matching by selecting another employee from the dropdown list.

     

    Confirm and you'll see the imported time entries under the TIMESHEET ENTRIES TO BE CALCULATED - they have been approved and are ready for the next step step in the payroll process.

     

    Finish your payrun as usual - and get ready to greet some happy employees who just got paid!

     

    Exporting payroll expenses to FreshBooks

    After you've completed your payruns for the month (or period defined by your CRA remittance cycle), go to ACTIONS and click END PERIOD. This will close the payroll period and generate a remittance report, as well as export data to FreshBooks.

    FreshBooks-Export-complete.png

    Next time you login to FreshBooks, you'll see your payroll expenses beautifully detailed for you!

    FreshBooks-expenses.png

     

    Notes on exports to FreshBooks

    FreshBooks currently does not support accounting concepts such as liabilities. Payroll taxes (federal and provincial) as well as employee contributions such as CPP and EI are normally considered liabilities in accounting. Exports from Payroll into FreshBooks are therefore limited - all line items are considered immediate expenses. To adjust for this, exports from Payroll are grouped to accommodate this deficiency.

    Employee portions of CPP, EI as well as provincial and federal tax are included with the net employee wages exported to FreshBooks "wages" category. Company portions of CPP and EI are exported to FreshBooks "taxes & liabilities" category. 

    You may want to work with your accountant to ensure that these liabilities are properly recorded in your year-end company summaries. Full detailed reports with proper accounting breakdowns can still be found in your Payroll account - please see Reports -> General Ledger.

     

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