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.
Follow these steps to connect to QuickBooks Desktop from Gusto:
The option to export a Gusto IIF file for your QuickBooks Desktop account will be available the next time you run payroll.
Total wages, taxes, benefit deductions/contributions, reimbursements and contractor payments will now be available to export to your QuickBooks Desktop account each time you run payroll.
If you have an accounting integration, you can customize the date associated with Gusto’s entry to better fit your bookkeeping needs.
The date of an entry dictates what period the expense information will fall in. For example, an entry dated Sep 30 would fall into Quarter 3 financials, while an entry dated Oct 1 would fall into Quarter 4 financials. When a pay period has a payday (or check date) that falls in a different month or quarter, this can create problems when you go to balance your books.
Entry date options
Our accounting integrations give you the ultimate flexibility for reporting, allowing you to choose from three entry date options.
Note: If you elect to have the end of the pay period as your entry date, Gusto will default to the check date for any payroll with no pay period, such as an off-cycle payroll or a contractor payment.
Change your entry date options
You can change your entry date selection anytime in Gusto.
Your payrolls will now export with entry dates based on your selection. You can retroactively sync any payrolls with these new settings.
In your Gusto settings, you have the option to consolidate employer taxes on your journal entry, or break each employer tax out. Follow these steps to view or change your consolidation setting.
When setting up the QuickBooks Desktop integration with Gusto, you'll be prompted to map the following Gusto payroll items:
Click here to learn more about mapping and commonly used pairings.
The more accounts you choose when setting up the accounting integration, the more detail there will be in the payroll entry sent to the accounting software. More detail in the entry results in more detailed reports in your accounting software (profit and loss report, expense reports, outstanding liability reports, etc.).
If you'd like to break out different types of earnings into different expense accounts, you can make different account selections for each earnings type. For example, you could have one expense account for vacation pay and a different expense account for overtime.
To add new accounts, you should create those accounts in QuickBooks Desktop and re-upload your QuickBooks Desktop chart of accounts. All the options in Gusto are generated based on what's in that file. Once you have mapped your chart of accounts, data can be exported to an Intuit Interchange Format (IIF) file, which you will then download and upload to your QuickBooks Desktop account.
Unlike online accounting integrations (QuickBooks Online, FreshBooks, and Xero), QuickBooks Desktop does not receive data through an automatic sync since it's an offline product. Data is instead exported to an Intuit Interchange Format (IIF) file, which you will then download and upload to your QuickBooks Desktop account.
Upload your chart of accounts
Mapping your chart of accounts correctly will allow Gusto to export an IIF file that matches the accounts in your QuickBooks Desktop setup. You can upload your account names from QuickBooks Desktop by following the instructions below.
Note: Refer to Intuit's help articles for more information on IIF files.
Map your chart of accounts
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.
To provide more granularity, you have the option to map your chart of accounts by employee, job, departments, 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 (optional).
Important: Review the section below related to the desired grouped mapping option before continuing. These sections contain setup information for each grouped mapping type.
The journal entries will be broken out by the grouped mapping selection the next time you sync payrolls to your accounting integration.
Note: Updating your company’s grouped mapping type will delete any overridden mappings associated with the previous journal entry consolidation type. Your company default mappings will be saved. For example, if you switch from consolidating by job to consolidating by department, any overridden mappings for your company’s jobs will not be retained. A reminder message will be displayed when you switch your journal consolidation method.
You have the option to override the default mappings for each employee, department, job, or project. This means you can assign different accounts to payroll items at the employee, department, job, or project level. Overriding your company’s default mappings is not required. The journal entries will be broken out by employee, department, job, or project regardless of whether any accounts have overrides.
You can add more granularity by mapping your accounts by employee. You can use different accounts for the different payroll items for each employee and contractor. This means you can have the earnings of each employee go to different accounts. This will expand the entry we send over into the accounting software.
As an example, say you have two employees. Before you enable employee mappings, all regular wages earned are sent to one "Salaries and Wages" expense account. After enabling employee mappings, you will see two line items for employee’s regular wages. You will have the option to use separate expense accounts for each employee. When running reports in your accounting software, you will have this additional breakdown.
If you use QuickBooks Classes, you can also map your employees to Classes.
These transactions will be exported by employee to your accounting software account. If any employees are left unmapped, they will sync based on the settings you choose under “Default Company Mappings.”
To map by employee, make sure you have already:
You can add more granularity by mapping your accounts by department. You can use different accounts for the different payroll items within a department. This means you can have the earnings of one department go to one account and the earnings of a second department go to a different account. This will expand the entry we send over into the accounting software.
As an example, say you have two departments: Design and Marketing. Before you enable department mappings, all regular wages earned are sent to one "Salaries and Wages" expense account. After enabling department mappings, you will see two line items for each department’s earnings. You can use separate expense accounts for each department. When running reports in your accounting software, you will have this additional breakdown.
If you use QuickBooks Classes, you can also map your departments to Classes.
These transactions will be exported by department to your accounting software account. If any departments are left unmapped, they will sync based on the settings you choose under “Default Company Mappings.”
To map by department, make sure you have already:
Job mapping is another way to add additional granularity. This option allows you to map accounts by each unique job title in Gusto. For employees with multiple jobs, each job can be mapped independently, and payroll costs associated with each job will be split out on the synced journal entry. This will expand the entry we send over into the accounting software.
As an example, say you employ cashiers and cooks at your business. Before you enable job mappings, all regular wages earned are sent to one "Salaries and Wages" expense account. After enabling job mappings, you will see two line items for each job’s earnings. You can use separate expense accounts for each job. When running reports in your accounting software, you will have this additional breakdown.
If you use QuickBooks Classes, you can also map your jobs to Classes.
Assign employees to jobs
Before you map your chart of accounts by jobs, make sure each employee is assigned to at least one job. Here's how:
Salaried employees: Edit their job title.
Hourly employees:
Hourly employees can have as many pay rates or jobs as you'd like. If an employee has multiple jobs, their paystub lists each job and its associated earnings.
For employees who have not been assigned a job title, their expenses are mapped based on the settings you choose under “Default Company Mappings.”
These transactions will be exported by job to your accounting software account. If any jobs are left unmapped, they will sync based on the default company mappings.
To map by job, make sure you've already:
Mapping by projects (as opposed to jobs or departments) is good for businesses with multiple people in the same role and when some employees work hours in one role and other hours in another role. Please note that consolidating by project is available to customers using Gusto Project Tracking.
As an example, say you have employees tracking time to two Gusto Projects. Before you enable project mappings, all regular wages earned are sent to one "Salaries and Wages" expense account. After enabling project mappings, you will see two line items for each project’s earnings. You can use separate expense accounts for each project. When running reports in your accounting software, you will have this additional breakdown.
If you use QuickBooks Classes, you can also map your projects to Classes. The same expense account can be used for each team and have an assigned QuickBooks Class—this keeps the reports in QuickBooks much cleaner and easier to understand.
These transactions will be exported by project to your accounting software account. If any projects are left unmapped, they will sync based on the settings you choose under “Default Company Mappings.”
To map by project, make sure you've already:
If you use QuickBooks Classes, you can map employees, departments, jobs, or Gusto Projects to Classes. Using Classes is optional and must be used in conjunction with the Grouped Account Mapping options. After applying your desired QuickBooks Classes, the payroll entry will tie to your dimensional reporting needs in QuickBooks Desktop.
Set Up QuickBooks Classes
Consolidating journal entries by employee and department are compatible with contractors.
Consolidating by job and project are not compatible with contractors. Job titles and Gusto Projects are not currently supported with 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.
Do you book the wage expense as gross wages or net wages?
Gross wages — the wage expense will include employee pay, employee taxes, and employee deductions. Employer taxes and employer contributions will have their own expense line item.
How do employee taxes and employee benefit contributions synced to QuickBooks Desktop?
They’re always included in Gross Wages & Salaries.
Do you break out individual taxes?
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 Settings 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.
Can I include employee benefit deductions on the Journal Entry?
Employee deductions are included in the gross wages amounts that are reported on the Journal Entry. These are not tracked separately because they are 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. Learn more here.
How do contractor payments sync over?
You have two options for syncing contractor payments. See Step 8 of the "Connect to QuickBooks Desktop from Gusto" section above for more information.
Do you support QuickBooks Classes?
Yes. Check out the “Customize Journal Entries” section above.
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?
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.
What if I want to break out each employees' payroll information?
You can change the journal consolidation method to “by employee.”
Can unique reimbursements be broken out through separate mappings?
No, all reimbursements will be pushed over as a lump sum (e.g. Cell Phone Reimbursement + Gym Reimbursement + Office Supplies Reimbursement, etc.).
What if I will not be using one of the payroll items listed?
The item will still need to be mapped to an account. If the payroll item is not 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.
How do I handle checks?
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.
Can I sync Gusto or NEXT insurance invoices to QuickBooks Desktop?
Not at this time.