How to use Xero to import a chart of accounts into your payroll software

Every business has its foundational blocks – the premises on which it operates, the people who keep it running and the systems and processes that get work done. However, when it comes to the financial foundation of a business, a chart of accounts is a fundamental tool to understand exactly how financial records are being kept.

As a business leader or payroll professional, you may find that balancing different software and processes makes keeping an up-to-date chart of accounts challenging, especially when including payroll details. We’re here to tell you that it doesn’t have to be hard. Keep everything current by integrating popular accounting software Xero with the streamlined, cost-effective Employment Hero Payroll.

Intrigued? Let us take you through how this could transform your work.

What is a chart of accounts?

A chart of accounts is a complete index of every account in a business’s financial records. Those accounts can include any type of asset, equity, revenue, expense and liability, all listed, numbered and categorised.

What a business’s chart of accounts looks like depends on the company itself. An international company with multiple divisions will likely have thousands of accounts, while small retailers may only have one hundred.

A chart of accounts also forms part of a businesses’ general ledger – a complete accounting record that also includes financial transactions, account balances and account periods.

Why is a chart of accounts useful?

If you’re a business leader, payroll professional, or considering offering payroll services to clients, having a clear chart of accounts is the most important way that you will be able to analyse a business’s financial performance. It allows you to be fully informed about the business you’re working with, and make strong choices in managing the finances.

From a compliance perspective, having a chart of accounts is also invaluable for ensuring the business is meeting financial reporting standards.

How to import chart of accounts from Xero to Employment Hero Payroll

If you’re a New Zealand payroll professional or accountant, there’s a good chance that at least one of your clients is already a Xero user. Likewise if you’re running your own company. The accounting software has 512,000 subscribers in the country as of 31 March 2022, and a good number of those are part of small to medium businesses.

For many of those businesses, Xero offers a natural home for a chart of accounts. There, you can collect crucial data and financial records.

However, what about payroll? A chart of accounts is important data that can come in useful during the payroll process. If payroll is processed elsewhere, that’s a lot of manual data entry between the two systems that you’re going to need to factor in to ensure everything is correct.

That’s where integration with Employment Hero Payroll comes in. It can ensure seamless data sharing between the financial books and payroll records. Get the best of a user-friendly, cost-efficient payroll platform that can integrate with the most common accounting software in New Zealand.

How to integrate Xero and Employment Hero Payroll

Integration with Employment Hero Payroll is designed to be super easy. That way, payroll professionals can onboard a new client system in just a few steps.

First, log into Employment Hero Payroll, before navigating to the “Payroll Settings” tab. Then, click on “Integrations” under the Business Management section. Select “Xero” from the list and then “Connect to Xero”.

You will then be redirected to the Xero website to authorise your client’s business and allow the data to be transferred between the two platforms. Completed successfully, this should take just a few minutes.

It’s important to note that you’ll need to have at least the following subscriptions on the two different platforms for this integration:

• Xero – Standard + Payroll Admin
• Employment Hero – Payroll Standard

How to import a chart of accounts from Xero to Employment Hero Payroll

Once the integration has been completed, you’ll need to map your payroll chart of accounts with your Xero accounts. To ensure that key data is shared with Employment Hero from then on, click on “Payroll Settings”, then “Chart of Accounts”.

On the right hand side, click the button titled “Import Accounts”. Once you’ve clicked that, a list of all the general ledger accounts will appear. Simply click the “unhide” buttons next to the accounts you want shared with Employment Hero Payroll, and click “Save Accounts List”. Now all the information you want across both platforms will be shared.

The benefits of sharing data between Xero and Employment Hero Payroll

Sharing your chart of accounts across Xero and Employment Hero Payroll gives you the best of both worlds in payroll and accounting. It’s also a great way to ensure you can support your business or your clients in a timely fashion. Here are just a few of our favourite benefits from using this integration.

Save time

Once set up, our one-click payroll integration means that in a few minutes, information is directly synced between Employment Hero Payroll and Xero. That’s a lot of time saved if you previously had to manually copy and paste data between unsynced platforms. Now, sharing information is a streamlined process.

Work with a trusted partner

By integrating Employment Hero Payroll with Xero, you and your clients will have access to our full suite of support articles that are designed to help take control over all aspects of your payroll processes. And if you have any questions, you’re in good hands with Employment Hero Payroll. The team pride themselves on their customer support and easy communication channels.

Eliminate double data handling

Employment Hero Payroll’s integration with Xero sends payroll data from multiple sources directly into Xero without inconsistencies or discrepancies, meaning no more manual errors. Likewise with any changes to your chart of accounts – data is shared in just a few clicks, and categories can be automatically mapped to locations so that the pay run journal is accurately shared between the two.

Create an agile tech stack

How does your tech stack, stack up? If you’re an accountant or payroll professional, it’s important to have the right combination of technologies that can adapt easily for a range of clients. Having two popular platforms in your toolkit can make you a strong choice for those clients who have the odd gaps in their own selection.

For more information on building a strong tech stack, check out our blog here.

Other benefits from a Xero and Employment Hero integration

Integrating Employment Hero Payroll with Xero equips you with a fully-featured workforce management and payroll experience alongside seamless accounting in the cloud. There are plenty of additional features that businesses have found valuable over time.

Consistent innovation

The partnership between Employment Hero and Xero is a strong one. Both work together to strengthen the integration between the two platforms, to ensure that they’re meeting users’ needs. Employment Hero regularly releases new functions for Xero customers, and will continue to do so as the two platforms evolve.

Complete payroll management and reporting

Employment Hero Payroll isn’t just your average payroll software. It’s designed to completely transform processes, from automated pay runs and payday filing, to comprehensive reporting. Say goodbye to manual data entry or painful days calculating complex payments – Employment Hero Payroll does all that for you.

Employee self-service

Employees can self-manage aspects of their employee files in Employment Hero Payroll with our employee self-service features. Whether it’s a leave request, submitting timesheets or checking banking details, save yourself or your clients the extra admin. Even better, the powerful integration will keep Xero up to date on these changes too.

Ready to integrate Xero with Employment Hero Payroll? Speak to our team today.

Make your payroll and accounting processes effortless with the integration of Xero and Employment Hero Payroll, a cost-effective and easy partnership.

Speak to our team about how we can support you and your clients. 

Are you interested in becoming an integration partner with Employment Hero? We’re proud of our integrations with Xero and other leading platforms. Join our roster of trusted partners and see how we can add value to your platform.