Payroll Integration with Bookkeeping

Updated November 2025

Running payroll separately from bookkeeping means manual work. Every pay period, you're manually posting payroll journals (salaries, PAYE, NIC, pension contributions) into your accounting system. That's time-consuming, error-prone, and means your books are always a step behind your payroll. Payroll integration automatically syncs payroll data to your bookkeeping, so salaries, PAYE, NIC, and pension contributions appear in your accounts automatically.

Here's what you need to know:

  • Payroll integration automatically syncs payroll data (salaries, PAYE, NIC, pension contributions) to bookkeeping, eliminating manual data entry and errors (gov.uk PAYE)
  • Integrated payroll and bookkeeping ensures accurate financial records — Payroll costs, PAYE, NIC, and pension contributions automatically appear in accounts (gov.uk payroll)
  • HMRC requires accurate payroll records — Payroll integration with bookkeeping ensures compliance and reduces risk of errors in PAYE submissions and accounting records (gov.uk keeping records)
  • Payroll integration saves time by automating payroll journal entries, eliminating manual posting of salaries, PAYE, NIC, and pension contributions to accounting records

The problem is most businesses run payroll in one system (like HMRC's Basic PAYE Tools, or payroll software like Sage, Xero, or QuickBooks Payroll) and bookkeeping in another (like Xero, QuickBooks, or Sage accounting). That means every pay period, someone has to manually post payroll journals, which is slow, error-prone, and means your books don't reflect payroll costs in real-time.

We handle payroll integration with bookkeeping for businesses with employees: payroll integration setup, automatic sync configuration, payroll journal automation, and compliance setup. Whether you're a business in Medway with employees needing payroll integration, a company in Maidstone using separate payroll and bookkeeping systems, or a business in Canterbury wanting automated payroll journals, we'll connect your payroll to your bookkeeping automatically. No manual posting, no errors, no delays—just automatic payroll integration that keeps your books accurate.

What this helps you do (fast)

  • Automatic payroll sync — Payroll data (salaries, PAYE, NIC, pension contributions) automatically syncs to your bookkeeping system. No manual posting, no delays, no errors.
  • Reduce manual work — Eliminate manual payroll journal entries. Payroll integration posts salaries, PAYE, NIC, and pension contributions automatically every pay period.
  • Improve accuracy — Automatic sync reduces errors compared to manual posting. Payroll data flows directly from payroll system to bookkeeping, eliminating transcription errors.
  • Ensure compliance — Integrated payroll and bookkeeping ensures accurate records for HMRC. PAYE, NIC, and pension contributions are recorded correctly in your accounts.
  • Real-time financial records — Your books reflect payroll costs immediately after payroll runs, not days or weeks later. See accurate financial position in real-time.
  • Save time — Payroll integration saves hours every pay period. No more manually posting payroll journals, reconciling payroll costs, or fixing posting errors.

How it works

Step-by-step process for payroll integration setup:

  1. Discovery call — We chat about your setup: what payroll system you're using (HMRC Basic PAYE Tools, Sage Payroll, Xero Payroll, QuickBooks Payroll, etc.), what accounting software you're using (Xero, QuickBooks, Sage, etc.), how many employees you have, how often you run payroll, and what your current process looks like (manual posting, spreadsheets, etc.).
  2. Integration assessment — We assess integration options:
    • Same-platform integration — If you're using Xero Payroll with Xero accounting, or QuickBooks Payroll with QuickBooks accounting, integration is straightforward (built-in)
    • Third-party integration — If you're using different payroll and accounting systems, we'll assess integration options (API connections, third-party integrations, or data export/import solutions)
    • Custom integration — If standard integrations aren't available, we'll assess custom integration options
    We'll identify the best integration approach for your setup.
  3. Integration setup — We set up the integration:
    • Same-platform setup — Configure built-in integration (enable payroll sync, set up automatic journal posting, configure account mappings)
    • Third-party integration — Set up API connections or third-party integrations (connect payroll system to accounting software, configure data sync, set up account mappings)
    • Custom integration — Build custom integration if needed (API connections, data export/import automation, account mapping)
    Integration will sync payroll data automatically to your bookkeeping.
  4. Account mapping configuration — We configure how payroll data maps to your accounts:
    • Salary accounts — Map salaries to correct expense accounts
    • PAYE account — Map PAYE deductions to PAYE liability account
    • NIC accounts — Map employee NIC and employer NIC to correct liability accounts
    • Pension accounts — Map pension contributions (employee and employer) to correct accounts
    • Other deductions — Map other deductions (student loans, attachment of earnings, etc.) to correct accounts
    Payroll data will post to the right accounts automatically.
  5. Testing and verification — We test the integration:
    • Test payroll run — Run a test payroll and verify data syncs correctly
    • Verify journal entries — Check that payroll journals post correctly to all accounts
    • Verify account balances — Verify PAYE, NIC, and pension liability accounts are correct
    • Verify compliance — Ensure payroll data in bookkeeping matches payroll records for HMRC
    We'll verify everything works correctly before going live.
  6. Training and handover — We train you on how to use the integration:
    • How payroll sync works — Understanding automatic sync process
    • How to verify sync — Checking that payroll data syncs correctly after each pay period
    • How to handle exceptions — What to do if sync doesn't work (manual correction, troubleshooting)
    • How to run reports — Generating payroll reports from integrated system
    Or if you prefer, we can handle payroll integration maintenance for you.

What payroll integration includes:

  • Integration setup (same-platform, third-party, or custom integration)
  • Account mapping configuration (salaries, PAYE, NIC, pension, other deductions)
  • Testing and verification (test payroll runs, journal verification, compliance checks)
  • Training on how to use the integration
  • Ongoing support for integration maintenance (if needed)

Common payroll integration scenarios:

  • Xero Payroll + Xero accounting — Built-in integration, straightforward setup
  • QuickBooks Payroll + QuickBooks accounting — Built-in integration, straightforward setup
  • Sage Payroll + Sage accounting — Built-in integration, straightforward setup
  • Third-party payroll + accounting software — API integration or data export/import
  • HMRC Basic PAYE Tools + accounting software — Data export/import integration

We work with whatever payroll and accounting systems you're using. The key is connecting them automatically so payroll data flows to your bookkeeping without manual work.

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Fixed fees • HMRC compliant • Based in Kent & Dubai

Costs & timelines

Pricing factors:

  • Integration type — Same-platform integration (built-in) costs less than third-party integration or custom integration
  • Number of employees — More employees might mean more complex account mappings
  • Integration complexity — Simple integrations (same-platform) cost less than complex integrations (third-party, custom)
  • Ongoing support — Integration maintenance and support is separate from setup

Commonly reported ranges by local providers:

  • Same-platform integration setup: £200–£400 (built-in integration, straightforward setup)
  • Third-party integration setup: £400–£800 (API integration, data export/import setup)
  • Custom integration setup: £800–£1,500+ (custom API integration, data automation)
  • Ongoing integration support: £50–£100/month (if needed for maintenance and troubleshooting)

Why payroll integration costs what it does:

  • Integration setup requires technical knowledge (API connections, data mapping, account configuration)
  • Testing and verification ensures integration works correctly
  • Account mapping configuration ensures payroll data posts to correct accounts
  • Ongoing support ensures integration continues working (if needed)

Timeline: Same-platform integration setup usually takes 2–3 hours. Third-party integration might take 1–2 days. Custom integration might take 1–2 weeks depending on complexity. Testing and verification adds time to ensure everything works correctly.

Ongoing support: If you want ongoing integration support (maintenance, troubleshooting, updates), that's separate. Typical ongoing support is £50–£100/month depending on complexity and frequency of support needed.

No hidden fees. Integration setup price includes assessment, setup, account mapping, testing, verification, and training. Ongoing support is separate if you want maintenance and troubleshooting.

Kent (UK) focus

We work with businesses across Kent: businesses in Medway with employees needing payroll integration, companies in Maidstone using separate payroll and bookkeeping systems, and businesses in Canterbury wanting automated payroll journals.

Kent businesses with employees face the same payroll integration needs as everyone else—automatic sync, reduced manual work, compliance, accurate records. The difference is when your payroll is integrated with bookkeeping, payroll costs appear in your accounts automatically, reducing manual work and ensuring compliance. Perfect for Kent businesses wanting to streamline payroll and bookkeeping processes.

Common Kent business scenarios:

  • Businesses with employees — Companies with staff needing payroll integration with bookkeeping
  • Growing businesses — Businesses that have grown and need to integrate payroll with bookkeeping
  • Businesses switching systems — Businesses switching payroll or accounting systems and needing integration setup
  • Businesses wanting automation — Businesses wanting to automate payroll journal entries to save time

Kent business market context:

  • Kent businesses with employees need efficient payroll and bookkeeping processes
  • Payroll integration helps Kent businesses reduce manual work and improve accuracy
  • Integrated systems help Kent businesses stay compliant with HMRC requirements

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses with employees are dealing with. Payroll integration, automatic sync, compliance—we'll connect your payroll to your bookkeeping automatically so you don't have to manually post payroll journals every pay period.

FAQs

Payroll Integration with Bookkeeping - Frequently Asked Questions

Common questions about payroll integration with bookkeeping services

Payroll integration connects your payroll system to your accounting software automatically. If you're using the same platform (e.g., Xero Payroll with Xero accounting), integration is built-in and just needs configuration. If you're using different systems, we'll set up API connections or data export/import automation. Payroll data (salaries, PAYE, NIC, pension) then syncs automatically to your bookkeeping, eliminating manual posting.
They don't legally need to be integrated, but integration makes sense if you want to save time and reduce errors. Without integration, you manually post payroll journals every pay period, which is time-consuming and error-prone. With integration, payroll data syncs automatically, saving time and ensuring accuracy. Most businesses with employees find integration worth it.
Payroll affects bookkeeping in several ways: salaries are expenses, PAYE and NIC are liabilities (money owed to HMRC), pension contributions are expenses/liabilities, and payroll costs affect profit and loss accounts. Without integration, you manually post these entries every pay period. With integration, payroll data syncs automatically, ensuring accurate financial records.
Payroll integration means connecting your payroll system to your accounting software so payroll data syncs automatically. Instead of manually posting payroll journals (salaries, PAYE, NIC, pension) every pay period, integration posts these entries automatically. It saves time, reduces errors, and ensures your books reflect payroll costs in real-time.
You need payroll integration if: you have employees, you run payroll regularly, you manually post payroll journals to your bookkeeping, or you want to save time and reduce errors. If you have employees and run payroll, integration is usually worth it—it saves hours every pay period and reduces errors. Without integration, you're doing manual work that could be automated.
Commonly reported ranges from local providers are £200–£400 for same-platform integration (built-in), £400–£800 for third-party integration, or £800–£1,500+ for custom integration. Ongoing support might be £50–£100/month if needed. Cost depends on integration type and complexity. Most businesses find integration pays for itself in time saved within a few pay periods.

Related services

View all bookkeeping services →

Need help integrating payroll with bookkeeping?

We'll connect your payroll system to your accounting software automatically. No more manual posting—payroll data will sync to your bookkeeping automatically every pay period.

Fixed fees • HMRC compliant • Based in Kent & Dubai

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