The ultimate guide to integrating your payroll and accounting

Dealing with the monthly payroll can be a real headache for business and HR managers.

The logistics of ensuring that all your employees get paid the right amount, at the right time, and that this links up with your accounting and other software can often be a nightmare.

“That’s why integrating payroll with your systems can be a real game-changer for businesses,” explains Catharina Davies,, Chief Financial Officer CFO and MD of A2Z Cloud.

“Integration ensures that you have a seamless flow of information between your payroll, HR, expenses and finance, and reporting functions. This has been transformative in terms of how we run our business at A2Z Cloud,” says Catharina.

Many businesses run the payroll and accounting tasks on different systems. Generally, this means you have to input the data on multiple systems, which is very time-consuming and can lead to manual errors and discrepancies.

But these headaches are now a thing of the past with payroll integration. Online accounting software Zoho Books can now be integrated with KeyPay – a cloud-based management and payroll platform for the UK.

The new integration enables finance and HR managers to manage payroll transactions, such as salary, expenses, taxable benefits and pension contributions, effortlessly.

Payroll integration with Zoho Books and KeyPay

“With KeyPay, we no longer need to update the payroll settings or tax codes manually. This information comes through from HMRC into KeyPay automatically, which saves time and ensures 100% accuracy when running the payroll,” says Catharina.

Using Real-Time Information (RTI), KeyPay submits monthly returns to the UK HM Revenue and Customs (HMRC). Once RTI has been set up, monthly submissions are completed at the click of a button.

Furthermore, the Pension sync means you no longer have to manually upload your files to your Pension Portal – this is completed seamlessly.

Importantly, as a Cloud-based system, KeyPay’s payroll platform is also much more flexible and it can be accessed from anywhere.

Employees have access to their own KeyPay portal where they can collect pay slips and any other relevant documentation, such as P60s. Pay slips no longer have to be emailed to employees – so the process is now more secure and time efficient.

Real-time insights on business expenditure

With KeyPay’s integration, you can automatically sync financial data with Zoho Books and run reports showing the impact of staff costs on your business. Equipped with these business insights, you can keep a much closer eye on the overarching business costs and outgoings.

For the past eight months, A2Z Cloud has been running the KeyPay system alongside their existing one to assess its effectiveness.

“We’ve been really impressed,” says Catharina. “A2Z Cloud has been in talks with KeyPay for some time about introducing this integration. But we wanted to test this within our own business first before introducing it to clients. This was important so we could iron out any teething issues and understand all the different elements properly.”

For A2Z Cloud, running the monthly payroll is now a simpler, more streamlined process. “The key is in the set-up,” explains Catharina. “Once the payroll integration and set up are in place, it’s literally just a click of a button to start the pay run. Time savings translate into cost and efficiency savings – which is why this is such an important development.”

Payroll – outsource or bring in house?

Traditionally, many businesses have outsourced their payroll. But payroll and accounting integration could potentially persuade many firms to bring this activity in house. At a time when costs are rising sharply for businesses, with inflation and energy costs skyrocketing, this integration could offer many benefits.

“Payroll integration greatly helps efficiency for any business, big or small,” says Catharina. “Obviously, you do need to have the correct processes in place for managing payroll. But with KeyPay’s integration, this is much easier.”

So, what updates could we expect to see in the future?

“My view is that automation will play an increasing role,” says Catharina. “KeyPay are also releasing updates for the Construction Industry Scheme. This is because employers in the construction industry have additional PAYE requirements due to the scheme and IR35. KeyPay are also hoping to launch ‘Open Banking’ in the summer, making paying your employees even easier.

“But for now, at A2Z Cloud, we’re looking forward to helping our clients introduce payroll integration in their own businesses as part of our commitment to deliver effective business solutions.

“Zoho and KeyPay’s integration allows you to take greater control of your finances and become much more efficient within your budget. That can only be good news for businesses,” concludes Catharina.