Rippling is a hosted application that handles HR and IT tasks from onboarding, payroll and reimbursements to asset management, and it can post payroll journal entries directly into 📝Quickbooks Online.
Recording payroll journal entries well and correctly matters, and automating them costs a little more upfront but saves time every payroll. The Rippling–QuickBooks integration gives control over how numerous pay types, employee deductions and company contributions are recorded, to as many accounts across as many departments as necessary, and it makes clear what should be recorded as an expense and what should be recorded as a liability.
Before connecting Rippling, the 📝Chart of Accounts needs to be set up properly. Phase 1 below assumes expenses are not yet classified by department; Phase 2 adds departmental tracking in QuickBooks Online, which depends on company size.
Phase 1 Chart of Accounts
Phase 1 assumes that you have not started classifying expenses in QBO by department (Engineering, sales, marketing, HR, G&A etc).
Income Statement Accounts
- Salary & Related
- Total Wages
- Engineering Wages
- Sales Wages
- Etc Wages
- Payroll Taxe Expense
- Benefit Expenses - this is where we expense the company contributions to benefits costs.
- 401k Contribution Expense - this is where we expense the matching contributions that the company makes
Balance Sheet Accounts
- Payroll Liabilities
- Benefits Liabilities
- All deductions from employee paychecks for Health Insurance Expenses should go into this account
- All payments to Insurance Carriers like Aetna and United Healthcare should come out of this account
- Phase 2 might separate out health / dental / vision / life
- 401k Liabilities
- All deductions from employee paychecks for 401k should go into this account
- All payments to SSB TrustOpps / Guideline 401k should come out of this account
Phase 2
Set up departments in Quickbooks
Start recording every expense in a department
Think about doing this as your get within shooting distance of $10m in revenue
The control Rippling gives is a bit more comprehensive than Gusto and lightyears ahead of QuickBooks Payroll. On departments, I like to get the data flowing that way before a Series B.