The Gusto app is a separate app that integrates with FreshBooks to automatically create expenses with your preferred expense categories in your FreshBooks account after each payroll run.
Import Payroll Expenses
Gusto can import every payroll run you complete into FreshBooks as expenses with your preferred expense categories selected for you. Business owners can set this up using the below steps:
- Log into your Gusto account and select App Directory near the bottom left corner
- In the search bar, enter FreshBooks
- Then select the FreshBooks app
- When prompted, select the at my.freshbooks.com option
- Select the Connect to FreshBooks button
- Enter your FreshBooks login credentials if prompted to, and select Allow to authorize Gusto to access your FreshBooks account
- If you have multiple businesses, choose the specific business that you’d like Gusto to connect to and select Connect to FreshBooks
- Once connected, select the Edit button to customize your account mappings to determine which expense categories you'd like Gusto to use when importing expenses into your FreshBooks account (parent categories can only be selected)
- In your Gusto account, select Settings while inside the FreshBooks app
- For Auto-Sync, ensure Auto sync is selected so payroll runs are automatically imported into FreshBooks for you
- If needed, under Grouped mapping, choose Department from the dropdown to enable Department Account Mapping if needed
- For Entry Date, choose between Check Date, Debit Date, or End of Pay Period for the date of the expense when it’s created in FreshBooks. Once you’ve reviewed your settings, your app is all set up.
Note: If you’re using Bank Reconciliation as well, we recommend working with your Accountant on the mapping of your Gusto payroll expenses.
FAQs
What happens to my expenses if I have both the Gusto app connected and an active bank connection?
If you have the Gusto app integrated, your payroll runs are automatically imported as expenses. If you also have a bank account connected via Bank Connection / Bank Reconciliation that is also the same account you use for payroll runs, you will also view the same payroll runs automatically imported as expenses too.
To stop duplicate expenses from being created, it is recommended to delete the payroll-related expenses generated from your bank connection with the steps in How do I manage my expenses?. Your Gusto app will continue to create expenses every time you run payroll. The Gusto app's imported expenses are more accurate especially if using bank reconciliation.
| Bank Connection Imported Expenses (from Bank Transactions) | Gusto App Imported Expenses |
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When Gusto withdraws money to fund your payroll runs, it processes 2-5 different bank transactions:
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The Gusto app will import expenses in your FreshBooks account with the following transactions:
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How can I match my Gusto payroll transactions in Bank Reconciliation?
To reconcile Gusto entries, refer to the Payroll App steps which require editing your bank transactions to reflect Gross Wages and Employer Taxes instead of Net Pay and Total Taxes. This keeps the total payroll costs the same. Keep in mind:
- The Gusto app does not withdraw from your bank account for employee benefits but it still imports into your FreshBooks account as expenses - work with your accountant to record a journal entry for the liability related to the benefits in FreshBooks
- Any payments made for child support garnishments are already recognized by Gusto as an expense and are withdrawn from your bank account as a separate transaction