A smooth payroll client onboarding sets up the relationship for long-term accuracy and efficiency. Here's a repeatable process to follow with every new client.
Step 1: Get access to both systems
- Request accountant/bookkeeper access to the payroll provider (Gusto, ADP, Paychex, etc.)
- Get invited to the accounting software (QBO, Xero, QB Desktop)
- Confirm you can download payroll reports and view the chart of accounts
Step 2: Review the existing chart of accounts
Look at the accounting software's chart of accounts. Check whether payroll liability accounts already exist and are set up correctly (Other Current Liabilities in QBO, Current Liability in Xero). If they're missing or misconfigured, set them up now before the first entry.
Step 3: Download a prior payroll report
Download the most recent payroll report from the provider. This lets you understand the format, identify all the line items, and build the account mapping before going live.
Step 4: Build the account mapping
Create a mapping document (or configure it in PostBooks) that links each payroll line item to the correct account in the accounting software. For example:
- Gusto "Employee Gross Earnings" → Wages & Salaries (QBO)
- Gusto "Federal Income Tax" → Federal WH Payable (QBO)
- Gusto "Employee SS Tax" → FICA Payable (QBO)
Step 5: Run a test reconciliation
Using the prior payroll report, generate the journal entry and verify it balances. Compare totals to the payroll register. Catch any mapping errors before going live.
Step 6: Document the workflow for your team
Write a one-page SOP for this client: which provider they use, pay frequency, which report to download, where to file completed entries. This makes handoffs seamless.
PostBooks saves your account mapping per client — step 4 is a one-time setup. After that, every pay run takes under 60 seconds. Start your free trial.