IMPORTING FROM XERO
Paycycle has integrated with Xero to make your accounting easier. This integration is based on the Chart of Accounts and the account associated with each pay slip item. It is best to set this up very early in the process. So here's a rundown on how to go about it (or you can watch our 1 minute video).
OVERVIEW
When you register for your Paycycle account, we create a sample set of accounts for you as well as sample payroll items. To integrate effectively with Xero, you need to update these details. It is a 4 step process:
1. Import the Chart of Accounts from Xero into Paycycle
2. Change your list of default accounts
3. Update the pay slip items in Paycycle
4. Delete the sample accounts
STEP 1: IMPORTING CHART OF ACCOUNTS FROM XERO
Just log onto Paycycle, go to Settings, Chart of Accounts and click on Import from Xero.
A pop-up window is displayed. Click on the Authenticate with Xero button, which will open a new browser and navigate to the Xero login screen automatically.
Log onto Xero, select your organisation name from the drop down list, then click the green Authorise button. After a few seconds, the list of accounts in Paycycle will correlate with your Xero accounts.
When you authorise Paycycle to integrate with Xero in this way, your authority only lasts for 30 minutes. So, if you update your accounts with Xero and want to re-synchronise with Paycycle, you will need to authorise Paycycle again.
STEP 2: CHANGE YOUR LIST OF DEFAULT ACCOUNTS IN PAYCYCLE
This step shouldn’t be too hard either. In Paycycle, go to Settings, Employer Settings, Default Accounts.
For each of the 5 purpose accounts listed, change the account from the default to the appropriate Xero account. If you have customised your Chart of Accounts in Xero, your settings may need to be different. But, if you are using the default Chart of Accounts, our dummy accounts are the same (except Payment Asset Account). Here is the list for you to check:
PAYG Liability Account – 825: PAYG Withholdings Payable
Payment Asset Account – XXX: Whatever account you pay your employees out of
Super Expense Account – 478: Superannuation
Super Liability Account – 826: Superannuation Payable
Wages Expense Account – 477: Wages and Salaries
STEP 3: UPDATING PAY SLIP ITEMS IN PAYCYCLE
This step is probably the most involved and the most dependent on your particular circumstances. But, don’t worry too much, because you can make changes if you need to at anytime.
In Paycycle, go to Settings, Pay Slip Items. Go through each of the Earnings Rates and change the Expense Account to the one most appropriate to your needs. In most cases, you will probably select “477: Wages and Salaries". But, if you track allowances and overtime with a separate account, you should select it here.
Follow the same process with Deduction Types. The normal control account used for deductions is “850: Suspense” but, depending on the type of deductions you withhold, you may well have an account for that specific purpose.
Now finish this step off by updating the control account on each Reimbursement Type. You might use the “850: Suspense” account if you don’t have an account that matches your specific needs. Of course, if any of the pay slip items don't apply to your business, you can just delete them.
STEP 4: DELETING SAMPLE ACCOUNTS IN PAYCYCLE
This step is optional,, but if you are not using Xero sample accounts as part of your chart of accounts, then Paycycle sample accounts might generate confusion down the track.
In Chart of Accounts, Select each of the sample accounts and delete them by clicking on "Delete Account" under Acount Actions.
If you still have anything linked to these accounts, you will receive an error message if you try to delete them. If you need help identifying what is linked, send us an email to support@paycycle.com.au.
This may seem like a bit of handful but you only have to do it once. We will be including a wizard to make it simpler to setup your accounts for Xero. But, for now, just follow these steps and you’ll be on your way.