QuickBooks Desktop & Friday Payroll Integration #

Purpose: To establish a seamless data link between Friday Payroll and QuickBooks Desktop (QBD) for accurate general ledger reporting.

Frequency: Initial setup performed once; payroll exports performed every pay period.

QuickBooks Desktop Account Preparation #

Before initiating the link in Friday, ensure your Chart of Accounts in QuickBooks Desktop contains the following 14 accounts.

Bank Accounts #

• Operating Bank Account: The primary account for tax and net pay debits.
• Direct Deposit Clearing: A dedicated bank-type account used to balance direct deposit totals.

Expense Accounts #

• Payroll Expenses: Wages: Sub-account for hourly/salary.
• Payroll Expenses: Contractor Wages: For 1099 payments.
• Employer Taxes: Company-paid portions (FICA, FUTA, SUI).
• Employer Deductions/Benefits: Company-paid portions of health, 401k, etc.
• Reimbursements: For non-taxable employee repayments.
• PTO / Commissions: (Optional) Separate accounts for granular tracking.

Liability Accounts #

• Employee Taxes Payable
• Employee Deductions Payable
• Employer Taxes Offset
• Employer Deductions Offset
• Disability/PFL Payable: (Required for NY and specific states)

Exporting Account Lists from QuickBooks #

Friday needs to access your QuickBooks accounts to map them.

1. Open your QuickBooks Desktop company file.
2. Navigate to File > Utilities > Export > Lists to IIF Files.
3. Check the box for Chart of Accounts.
4. (Optional) Check Customer List and Class List if you use Job Costing or Departmental tracking.
5. Click OK and save the file to your desktop as QB_Accounts.iif.

Mapping Accounts in Friday #

1. Log into Friday and go to Settings > Integrations > QuickBooks Desktop.
2. Click the green Import Accounts button.
3. Select Import/Update QuickBooks IIF file and upload the QB_Accounts.iif file created in the previous step.
4. Match the Friday system categories to your QBD accounts using the mapping table below:

| Friday Category | QuickBooks Account Mapping |
|————————|—————————————-|
| Bank Account | [Your Main Operating Bank] |
| Direct Deposit | Direct Deposit (Clearing Account) |
| Earnings | Payroll Expenses: Wages |
| Employee Taxes | Liability: Employee Taxes Payable |
| Employer Taxes | Expense: Employer Taxes |
| Employer Taxes Offset | Liability: Employer Taxes Offset |
| Employee Deductions | Liability: Employee Deductions Payable |
| Employer Deductions | Expense: Employer Deductions |
| Employer Deductions Offset | Liability: Employer Deductions Offset |
| Contractor Payments | Expense: Contractor Wages |

1. Click Save Changes.
2. (Optional) If using Job Costing: Click the Customers tab and match the Friday Customer names to the QuickBooks Customer names.

Ongoing Payroll Workflow #

After every payroll run, manually move the data to QuickBooks Desktop.

Export from Friday #

1. Go to the Payroll history in Friday.
2. Click the Eyeball Icon next to the specific payroll run.
3. Select Export, then click Download QuickBooks IIF file.

Import to QuickBooks #

1. In QuickBooks Desktop, go to File > Utilities > Import > IIF Files.
2. Select the downloaded file.