How does the QuickBooks Online integration work?

FAQs about Eddy's QuickBooks Online integration

Updated: January 5, 2023

Q: What bookkeeping software does Eddy currently support?

Eddy currently supports integration with QuickBooks Online. We expect to add support for additional bookkeeping software over time. Please feel free to drop us a note and let us know what bookkeeping software you are using.

Q: How do I connect my QuickBooks Online account to Eddy’s payroll system?

To connect QuickBooks Online, go to Admin settings and select the Payroll tab. On the side menu you'll see a link for Accounting integration. Click this link to view the available integrations (for now QuickBooks Online is the only option). On the QuickBooks Online card click the View button to get started.

Next you'll click the QuickBooks Online link to open a window that lets you log in and authorize connecting to their Quickbooks Online account.

Q: Which categories must be mapped to the chart of accounts to create payroll journal entries in the general ledger?

The following payroll categories must be mapped to a company’s chart of accounts to enable the proper flow of payroll data from Eddy's system to the QuickBooks Online general ledger. The categories that are optional can be marked in the dropdown selection as “N/A.” However, we advise you to map all categories to accounts in the event that you begin using the category in the future to prevent errors.

Category	Flow	Description	Sample Entries
Wages and Salaries	Expense, Debit	All earnings paid to employees and contractors in the pay period. (Also known as “Compensation”. )	Employee Wages & Salaries (Gross Pay excluding Reimbursements)
Contractor Payments	Expense, Debit	All earnings paid to contractors in the pay period. (Also known as “Compensation”. )	Contractor Payments (Gross Pay excluding Reimbursements)
Expense Reimbursements	Expense, Debit	All reimbursements paid to employees and contractors in the pay period.	Employee Reimbursements Contractor Reimbursements
Employer Taxes	Expense, Debit	All employer taxes for the pay period.	Employer Taxes
Employee Benefits	Expense, Debit	All benefits paid by the employer and remitted by the employer for the pay period.	Employee Benefits
Bank Account	Liability, Credit	The account that funds the amount that the employer is liable for over a given pay period.	Cash Requirement (ACH) -- including any taxes and/or garnishments paid by Check Checks, ie. Check #122 -- broken out individually
Payroll Taxes Payable	Liability, Credit	All employer taxes to be paid -- i.e. not remitted by Check.	Non-remittable Taxes
Cash Tips	Liability, Credit	All cash tips paid to employees directly	Cash Tips
Imputed Income	Liability, Credit	Other imputed income such as use of a company car or gym membership	Other Imputed Income
Other Payroll Liabilities	Liability, Credit	All employer benefits and PTDs to be paid out by the employer -- i.e. not managed by Check	Employee Benefits Liabilities Garnishments

Q: What happens if the “auto-push” toggle is enabled?

If “auto-push” is enabled, then the payroll will be automatically pushed to the general ledger as a new journal entry when the payroll moves to the “processing” status from the “pending” status.

Q: Which payrolls can be pushed to QuickBooks Online?

Only Eddy-managed payrolls can be pushed between Eddy and QuickBooks Online. Non-managed historical payrolls cannot be pushed between these systems.

Q: Can I manually push a payroll to a QuickBooks Online account?

No, but if this becomes necessary our payroll support team can assist with a manual push.

Note: Eddy does not guard against duplicate entries in the general ledger, so a manual push can lead to having duplicate entries.

Q: What is the date used for the journal entry?

The Journal entry’s transaction date will be the approval deadline for payrolls that are run through Eddy. This date coincides with the date that the cash requirement is pulled from your company bank account. If a payroll doesn’t have an approval deadline, the transaction date will default to the payroll’s payday.

Q: Does Eddy support cash and/or accrual accounting?

Eddy supports cash accounting. We recommend this method as the “cleanest” method of payroll accounting, and the easiest for most small business customers. For each payroll, we will create a single journal entry at the employer level. An entry will be created for each pull from the company’s Bank Account used to fund payroll (the cash requirement debit and each individual check paid to an employee).

Q: What’s an example of a journal entry that I would see in my general ledger?

The following is an example of a journal entry:

Q: What happens if I would like their journal entry constructed in a different way?

Eddy only supports journal entries of the above structure. If you would like additional customization, a payroll journal report is available for each payroll run in Eddy. With that granularity, you should be able to construct a journal entry that is suitable for your accounting needs.

Q: What happens if I remove an account that’s been mapped to a category?

If an account is missing when a payroll entry is pushed to QuickBooks, then the entry will fail. In this situation you should complete the mapping to continue.

Q: What happens if my authentication to QuickBooks Online expires?

If your QuickBooks Online account authentication expires, then the payroll entry push will fail. You can re-authorize the QuickBooks Online account using the same tools used to add the account. From there, you will see the mappings that you had previously configured and can proceed with using this feature again.