QuickBooks Online is an online platform geared towards small to medium-sized businesses who are looking for real-time views into the day-to-day expenses of their business. Features include expense tracking, data entry, mobile compatibility, and accountant access for a fully rounded software experience.
Our two-way integration with QuickBooks Online builds and syncs a detailed journal entry into your QuickBooks Online Account. We can pull your chart of accounts directly from QuickBooks Online and use your customized accounts to create a journal entry. There are also options for additional levels of granularity within the entry based on earnings types, Gusto departments, and QuickBooks Online classes.
Gusto Accountant Partners who have clients with QuickBooks Online connected to Gusto can track a payroll budget using payroll to revenue ratio, and how much it will cost their client to hire a new employee with our People Analytics tool.
Step 1: Connect to QuickBooks Online from Gusto
You’ll need admin permissions in both Gusto and QuickBooks Online to connect your accounts. Start here:
Step 2: Automate your mappings (Recommended)
Automating your mappings is optional but recommended to avoid sync errors. This lets you pre-select which QuickBooks Online accounts should be used by default for new payroll categories. This means that when a new item is created in Gusto, you will not need to manually map it—Gusto will automatically apply your default mapping.
You’ll manage automated mappings in the Default tab. Click here for more details and next steps.
Step 3: Choose your sync settings
In the Settings section of the integration, go to the Manage tab to set up any sync preferences—such as whether the sync runs automatically or manually, or whether certain taxes should be consolidated.
Click here for a description of each setting and how to set them up.
Below is each setting you can customize and how to do so.
Here’s how to get to any of these settings:
Contractor payment sync
If you pay contractors through Gusto, decide how those payments should sync:
Employer tax consolidation
Choose how you want employer taxes to appear in QuickBooks Online:
Journal entry consolidation
By default, Gusto consolidates entries of the same type into a single journal entry. You can also choose to group entries:
To learn more about group mappings, check out the “Consolidated mapping” section of this article.
Entry date options
Select when the journal entry should appear in QuickBooks Online:
Here’s why mapping your chart of accounts matters:
Map your chart of accounts
Time-saving tips for the Mapping tab:
Since Gusto does not take any money for benefits or deductions, we include a mapping for benefit/deduction liabilities. This will create line items within the journal entry and accrue an amount owed for the benefit/deduction. When the benefit/deduction is then paid to the correct party, in QuickBooks Online you can offset your liability and zero out the amount owed.
Why default mappings matter
Over time, you may make changes to your Gusto account such as adding a custom deduction, creating a new earnings type, or setting up a new benefit. When this happens, new payroll line items are created in Gusto that need to be mapped to an account in QuickBooks Online. If these items are not mapped, they can cause sync issues. Setting up default mappings can help you with this.
What default mappings do
Default mappings let you pre-select the QuickBooks Online accounts that should be used for new payroll categories. This means that when you create a new line item, you will not have to manually map it to a QuickBooks Online account—Gusto will automatically apply your default mapping to it.
Setting up default mappings is optional. If you prefer to manually map new Gusto categories, simply leave the default mapping blank.
Set up default mappings
Follow these steps to set up or change default mappings:
Edit default mappings
You can change default mappings at any time in the Default tab. Changes will only apply to new mappings going forward.
Edit detailed mappings
If a new category has been given a default mapping you’d like to change, you can change it in the Detailed tab. Here's how:
If past payrolls have already been synced to QuickBooks Online with an incorrect mapping, you’ll need to manually re-sync those payrolls.
To provide more granularity, you have the option to map your chart of accounts by employee, job, department, or Gusto Projects (available to companies using Gusto Project Tracking). If you use QuickBooks Classes, you can also assign a class to each of the selected grouping options.
This is optional.
Step 1: Choose your journal entry consolidation method
Step 2: Set up mapping overrides and Quickbooks Classes (optional)
Once you select a consolidation method, a new tab appears on the left. Ex: If you choose to consolidate by employee, the tab will be called Employee. If you choose to consolidate by department, the tab will be called Department.
You can override default mappings for individual employees, departments, jobs, or projects. Overriding a default mapping means assigning different accounts to payroll items at these levels.
This is optional—if no overrides are applied, journal entries will still be categorized accordingly.
Here's how to set up an override:
Contractor payments
Consolidating journal entries by employee and department is compatible with contractors.
Consolidating by job and project is not compatible with contractors. This is because job titles and Gusto Projects are not currently supported for contractor profiles. If your company pays contractors and uses job or project consolidation, contractor payments will be synced based on the default company mappings.
Once you've connected to QuickBooks Online from Gusto, follow these steps to manually sync any payroll or contractor payment from Gusto to QuickBooks. This also works for any payrolls you need to retroactively sync.
The Journal Entry will post to your bank register for review and reconciliation.
Note: If you do not see the Sync button, confirm your integration is still actively set up and is not disconnected.
If a journal entry has failed to sync from your Gusto account to QuickBooks Online, QuickBooks Online will send us an error code. You can use these error codes to troubleshoot the syncing failure.
Error message | Detail | Resolution |
This entry has already been synced and matched with a downloaded bank transaction. To resync, you must first unmatch the downloaded bank transaction by following the steps in our Help Center. | The Journal Entry has already been reconciled and cannot be re-synced. | Unmatch the corresponding bank debits so that you manually re-sync the Journal Entry. This can be completed from within your Bank Feed in QuickBooks Online. For additional help, view this QuickBooks Help article. |
Your Gusto Account is no longer authorized to access QuickBooks Online. Please disconnect and reconnect the app in the App directory, then try again. |
We are unable to authenticate your QuickBooks account. | Disconnect and reconnect the app in the App directory. Next, manually re-sync the Journal Entry. |
Invalid Company Status | You can't add data to QuickBooks Online because your trial or subscription period ended, you canceled your subscription, or there was a billing problem. | To update your subscription, click the gear icon and view your account information. Manage billing, payment, and subscription info in QuickBooks Online. |
Your books are closed and Gusto cannot modify them. Please reopen your books by going to your advanced settings in QuickBooks Online. |
The quarter and/or year has been closed in your QuickBooks Online account. | Open the quarter and/or year to allow the Journal Entry to be manually re-synced. |
A mapped account is missing in QuickBooks Online. Please remap your accounts before syncing the Journal Entry. |
A change has been made to your Chart of Accounts which prevents the journal entry from syncing over. | Double-check your Chart of Accounts mappings to make sure each payroll item is fully mapped, or make the accounts you want to use “active” in QuickBooks Online. Then re-map in your Gusto account. If you have Department Mappings, make sure all mappings are completed for the applicable Departments as well. |
The Journal Entry is not balanced. | The credits and debits on the journal do not balance. | Contact us from the Help section of your account. |
There was an error syncing with QuickBooks Online. Please contact support. | A connection error has occurred between QuickBooks Online and Gusto. Further investigation is needed. | Contact us from the Help section of your account. |
Because Gusto does not take any money for benefits or deductions, we include a mapping for a benefit or deduction expense and a benefit or deduction liability. This will create accounts within your accounting software that accrue an amount owed for the benefit or deduction over time.
When the benefit or deduction is then paid to the requesting party, you can offset your liability account and zero out the accrued amount owed.
Benefits always have two line items on the journal entry:
Important: When money is pulled for an FSA or commuter benefit, before it is deducted through payroll make sure you don't create an expense but rather establish a receivable. It will be expensed in payroll when the amount is deducted. At that point with the deduction, then reduce the receivable.
Offset benefit liabilities
Option 1: Create an entry from the bank debit (created by paying the benefit or deduction) and assign that entry to the liability account to offset.
Option 2: Create a bill and associate the bill with the liability account.
If you pay employees by check, we recommend you print the checks from Gusto.
If you prefer to print checks from within QuickBooks Online, this can be accomplished by editing the Journal Entry in QuickBooks Online to avoid double reporting.
For any checks that will be printed from QuickBooks Online, we recommend updating the bank account line item on the Journal to a liability account. When you create the check in QuickBooks Online, you should code the line item to the same liability account, which will offset the account balance.
Edit a Gusto QuickBooks Online Journal Entry
Learn more about creating a liability check in QuickBooks Online.
Choose a section below for frequently asked questions about this integration.
Q: Do you support QuickBooks Classes?
A: Yes. See the “Consolidated mapping” section above.
Q: The chart of accounts in Gusto does not look correct. What should I do?
A: First, click Refresh chart of accounts in Gusto. If this does not resolve the issue, you may have linked the wrong QuickBooks account. Disconnect the integration and reconnect to the correct QuickBooks account.
Q: How do I handle checks?
A: We recommend printing checks from your Gusto account or handwriting them. You can then reconcile the journal entry from Gusto when the checks are cashed by your employees. We do incorporate the amount of each check in our Journal entry.
Q: Why can’t I find the QuickBooks account I’m looking for in the drop-down?
A: The initial list in the drop-down menu shows recommended accounts based on the selected category. To choose a different account, simply type the name of the account into the search box.
If you still cannot find the account, it may need to be created in QuickBooks first. Once you’ve created the account, click Refresh Chart of Accounts in Gusto and try searching for it again in the search box.
Q: Do I need to select a default for each section?
A: No, you are not required to select a default for every section. If you prefer to manually map specific sections, you can simply leave those sections blank.
Q: What happens if I do not set up default mappings?
A: Default mappings are designed to automate mapping of new payroll categories that are added to your integration. If you choose not to enable default mappings, you will need to manually select the appropriate account for each new payroll category.
Note that the sync will be paused until all categories are mapped to an account in QuickBooks Online, which may disrupt your integration process.
Q: When are new mapping categories created?
A: New categories may be created in your integration under the following circumstances:
Each of these actions can introduce new payroll categories that will require appropriate mapping to ensure your integration functions smoothly.
Q: If I set up or change default mappings, will that impact what I’ve already mapped on the Detailed tab?
A: No, this will only impact new categories that may be added to your integration going forward. If you would like to adjust your detailed mappings, you can do so manually in the Detailed tab.
Q: Can I change my default mapping selection later?
A: Yes, you can change your default mapping selections at any time. Note that any changes will only affect future mappings—your existing mappings will remain unchanged.
Q: If I update my mappings, can I re-sync a payroll to update the journal entry?
A: Yes. To re-sync a payroll:
Q: How do I break out individual employee payroll items?
A: You can change the journal consolidation method to “by employee.” To do this, go to the Settings tab and choose Manage. Next to "Journal entry consolidation, click edit. Select Employee.
Q: Why can’t I find the QuickBooks account I’m looking for in the drop-down?
A: The initial list in the drop-down menu shows recommended accounts based on the selected category. To choose a different account, simply type the name of the account into the search box.
If you still cannot find the account, it may need to be created in QuickBooks first. Once you’ve created the account, click Refresh chart of accounts in Gusto and try searching for it again in the search box.
Q: What if I will not be using one of the payroll items listed?
A: The item will still need to be mapped to an account. If the payroll item isn't applicable, nothing will come over related to the account that is selected within your entry. Only payroll items that apply to a processed payroll will populate within the synced entry.
Q: Can I include employee benefit deductions on the Journal Entry?
A: Employee deductions are included in the gross wages amounts that are reported on the Journal Entry. These are not tracked separately because they're not an additional expense to the company on top of what's already reported for wages.
Employee deduction amounts are included in the Benefit Liability along with the Employer Contributions (see "Offset benefit liabilities" above).
Q: Can unique reimbursements be broken out through separate mappings?
A: No, all reimbursements will be pushed over as a lump sum (e.g. Cell Phone Reimbursement + Gym Reimbursement + Office Supplies Reimbursement, etc.).
Q: Can I use more than one tracking category or journal consolidation method? For example, can I consolidate my journal entries by employee and by job?
A: No, not at this time. You must choose to consolidate by one method (by employee, department, job, or project). Next, you may select one class for each employee, department, job, or project.
Q: Can I change the way I consolidate my mappings?
A: Yes, you can change your consolidation preferences at any time. Simply go to the Manage tab located under Settings. However, please be aware that any changes will result in the deletion of previous consolidated account mapping overrides.
Q: Do I need to set up overrides for consolidated mappings?
A: Setting up overrides for consolidated mappings is optional. It's not required, but it does provide you with the opportunity to customize the mapping layout for each unique grouping you've established.
Q: Do I need to establish a QuickBooks Class for each consolidated grouping?
A: No, it's not mandatory. This is optional based on your specific needs.
Q: Is it possible to assign multiple QuickBooks Classes to a single consolidated grouping?
A: Currently, our system allows only one QuickBooks class to be assigned per consolidated grouping.
Q: Do you offer integration with QuickBooks Projects?
A: We do not currently offer direct integration with QuickBooks Projects.
If you choose to consolidate your mappings by project, each entry will be segmented according to the projects you've configured in your Gusto Project Tracker. However, keep in mind that this information will not be directly synced to QuickBooks Projects.
Q: Why didn’t my sync work?
A: Typically, a sync can stop working if you are no longer connected to QuickBooks Online or you have a missing mapping. See the “Troubleshooting sync errors” section above for more information.
Q: Why did Gusto disconnect from QuickBooks Online?
A: Occasionally, an authorization issue might disconnect the integration. To resolve this, simply reconnect the integration:
After re-establishing the connection, all your previous mappings should be preserved.
Q: If I update my mappings, can I re-sync a payroll to update the journal entry?
A: Yes. To re-sync a payroll:
Q: How do employee taxes and employee benefit contributions sync to QuickBooks Online?
A: They’re always included in Gross Wages & Salaries.
Q: Do you break out individual taxes?
A: Gusto handles all of your tax payments automatically. Because of this, you do not need to track tax liabilities. When we sync entries, we record employer taxes as expenses.
You can select for employer taxes to be broken by each individual tax or lump them together. You’ll find this option on the Manage tab under Settings.
At this time, we only support one account mapping which will be used across all employer taxes.
Employee taxes are not broken out individually for mapping or in journal entries, as these values are included in Gross Wages.
Q: How do contractor payments sync over?
A: You have two options for syncing contractor payments. See the "Customize sync settings" section above for more information.
Q: Is there a way to retroactively sync all payrolls once I enable auto-sync?
A: Auto-sync will only work for the payrolls moving forward from the time it is set up. Any payrolls run before auto-sync was enabled will need to be manually synced.
Q: What does the timestamp indicate?
A: The exact time Gusto successfully synced a payroll into the accounting software.
Q: Can I re-sync an entry that has already been reconciled?
A: You will need to un-reconcile an entry before you can re-sync it. This includes unmatching any bank transactions with the Journal Entries. QuickBooks Online considers matching as partial reconciliation.
Q: Can I sync international contractor payments to QuickBooks Online?
A: Yes, both US-based and non-US based contractor payments can be synced. To do so, go to the Pay section in Gusto and choose Pay history. Go to the Contractor payment history tab and select a payment to sync.
Q: Can I sync international employee payrolls to QuickBooks Online?
A: Not at this time.
Q: Can I sync Gusto or NEXT insurance invoices to QuickBooks Online?
A: Not at this time.