QuickBooks Desktop is a desktop accounting software for businesses who need industry-specific features and reporting. QuickBooks Desktop features include inventory tracking and job costing with the beauty of online collaboration and the speed of running QuickBooks Desktop on your local machine.
With our QuickBooks Desktop integration, you can export an Intuit Interchange Format (IIF) file containing your payroll information and upload it into QuickBooks Desktop software. This is compatible with all versions of QuickBooks Desktop that support IIF imports, including Mac, Pro, Premier, and Enterprise versions. You can upload your chart of accounts directly from QuickBooks Desktop 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 and Gusto departments.
Step 1: Connect to QuickBooks Desktop from Gusto
You’ll need admin permissions in both Gusto and QuickBooks Desktop 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 Desktop 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 Desktop:
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 “Group your account mappings and classes” section of this article.
Entry date options
Select when the journal entry should appear in QuickBooks Desktop:
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 Desktop you can offset your liability and zero out the amount owed.
This integration now includes an AI-powered feature that helps you choose the right accounts when setting up mappings for your chart of accounts. This is especially helpful if you’re not sure which account to pick for a payroll category.
Example: Say you’re setting up default accounts and don’t know what to choose. Gusto might suggest using Payroll Wages for Wages & Salaries, or Payroll Deductions Payable for Deductions.
How suggestions are generated
Gusto’s AI provides recommendations based on:
The AI model never stores or accesses your personal financial information. All suggestions are based on general patterns, not individual data.
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 Desktop. 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 Desktop 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 Desktop 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 you want these adjustments to reflect on past payrolls, you'll need to manually re-download the IIF file.
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.
Unlike online accounting integrations (QuickBooks Online, FreshBooks, and Xero), QuickBooks Desktop does not receive data through an automatic sync because it's an offline product. Data is instead exported to an Intuit Interchange Format (IIF) file, which you will download from Gusto and upload to your QuickBooks Desktop account.
To export your payroll to QuickBooks Desktop, you'll need to first set up QuickBooks Desktop in Gusto—learn how in the Connect to QuickBooks Desktop from Gusto dropdown above.
Troubleshoot upload errors
Upload errors typically occur when there is a mismatch between the accounts listed in Gusto and the accounts in QuickBooks Desktop. If there are account updates in QuickBooks Desktop, you must upload a new chart of accounts to Gusto.
Here's how to fix an upload error:
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:
Garnishments always have one line item on the journal entry for the garnishment liability. It tracks the amount owed for the garnishment/deduction.
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 check and associate that check with the liability account to offset.
If you pay employees by check, we recommend you print the checks from Gusto.
If you prefer to print checks from within QuickBooks Desktop, you can do this by editing the Journal Entry in QuickBooks Desktop. This prevents double reporting.
For any checks that will be printed from QuickBooks Desktop, we recommend updating the bank account line item on the Journal to a liability account or clearing account. When you create the check in QuickBooks Desktop, you should code the line item to the same liability or clearing account, which will offset the account balance.
Click here for steps to find and edit Journal Entries in QuickBooks Desktop.
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.
Note: If you would like to map QuickBooks Desktop Classes to your Journal Entry consolidation options (employees, departments, jobs, or Gusto Projects), be sure to tick the "Classes" option when exporting your chart of accounts.
Q: The chart of accounts in Gusto does not look correct. What should I do?
A: Unlike online accounting integrations like QuickBooks Online, QuickBooks Desktop is an offline product and does not receive data through an automatic sync.
If the chart of accounts is not correct, upload a fresh chart of accounts. For steps to upload a new IIF file, refer to the "Connect QuickBooks Desktop to Gusto" section of this article.
Note: Accounts Receivable and Accounts Payable account types are not supported at this time because these require a Contact to be used with the Account. Asset and Liability accounts are supported without a Contact.
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 your employees cash the checks. 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, upload a new chart of accounts. Refer to the "Connect QuickBooks Desktop to Gusto" section of this article.
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.
You cannot download journal entries until all categories are mapped to an account in QuickBooks Desktop, 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. Please 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 bill or 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,
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, upload a new chart of accounts. See the "Connect QuickBooks Desktop to Gusto" section of this article for steps to upload a new IIF file.
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 is not applicable, nothing will sync 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. Click here to learn more.
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. Under Settings, go to the Manage tab. Keep in mind that any changes will result in the deletion of previous consolidated account mapping overrides. Your company’s Detailed mappings will be retained.
Q: Do I need to set up overrides for consolidated mappings?
A: Setting up overrides for consolidated mappings is entirely optional. While it's not required, it does provide you the opportunity to customize the mappings layout for each unique grouping you've established.
Q: Is it necessary 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 an integration with QuickBooks Projects?
A: We do not currently offer direct integration with QuickBooks Projects. If you opt to consolidate your mappings by project, we will segment each entry according to the projects you've configured in your Gusto Project Tracker. However, please note that this information will not be directly pushed to QuickBooks Projects.
Q: Why is there an error when I try to upload the journal entries to QuickBooks Desktop?
A: Upload errors typically occur when there is a mismatch between the accounts listed in Gusto and the accounts in QuickBooks Desktop.
Here's how to fix an upload error:
Q: If I update my mappings, can I re-sync a payroll to update the bill or journal entry?
A: Yes. To re-sync a payroll:
Q: How do employee taxes and employee benefit contributions sync to QuickBooks Desktop?
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 under Settings under the Manage tab.
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 "Connect QuickBooks Desktop to Gusto" section of this article for more information.
Q: Can I sync international contractor payments to QuickBooks Desktop?
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 Desktop?
A: Not at this time.
Q: Can I sync Gusto or NEXT insurance invoices to QuickBooks Desktop?
A: Not at this time.
If you need to troubleshoot the connection or if you no longer want data to sync between Gusto and QuickBooks Desktop, follow the steps below to disconnect the integration. You can reconnect at any time.