Connecting Payroll apps - Gusto

Written by Emily Burrows
July 15, 2024

1. About

This article describes the key features /benefits of using Gusto as a payroll provider and explains how to integrate Gusto with Finaloop.

Once the integration is active:

• All payroll expenses, payroll taxes, contractor payments, and reimbursements are synced from Gusto and recorded directly to your P&L or Balance Sheet (as relevant).
• Bank payments to Gusto are matched with the data we sync from Gusto. This ensures granular breakdowns and full reconciliation and prevents double counting of expenses.
• Finaloop automates the breakdown of salaries & wages into different P&L categories, like marketing, shipping, G&A etc to the extent this data is broken down in Gusto.

2. Gusto key features

Here’s a summary of the key features and benefits you get when using the Gusto-Finaloop integration.

Daily accruals

For books managed on an accrual basis, payroll expenses will be recorded daily.

Department mapping

Ability to allocate direct/indirect payroll expenses, as well as contractor payments, to specific categories based on employee/contractor names or their departments defined in Gusto. Such as:

• Production
• Marketing
• G&A
• R&D

Breakdown per personnel type

Detailed breakdown by:

• Employees
• Owners
• Contractors

Full and automated reconciliation with bank transactions

Full matching to:

• net payments from the bank
• Payments to contractors
• check payments
• tax payments
• reimbursements

Payments to third parties such as trust companies or insurance companies for retirement and benefits (e.g., 401(k)).

Category mapping

Automates the breakdown of salaries & wages into different P&L categories based on mapping departments in Gusto or based on mapping specific employees.

3. Connect Gusto to Finaloop

Connect Gusto to Finaloop with just a few clicks.

> To connect Gusto to Finaloop:

1. Go to Settings > Integrations and scroll down to Backoffice apps.

2. Click on Gusto to connect your account. This will redirect you to the Gusto sign in screen.

3. Log into your Gusto account.

4. From Settings, click the Gusto Admin tab.

5. Click Add new admin. A new screen opens.

6. Select Not an employee as the employment status.

7. Complete the form with the following information:

• What does this person do?: Accountant
  • What will they help with?: Take care of taxes and reporting
  • First Name: Accountant
  • Last Name: Finaloop
  • Email: accountant@finaloop.com.

8. Click Add admin.

9. That’s it, you’ve now connected Gusto payroll with Finaloop.

10. From the Finaloop menu pane, navigate to Payroll > Employees to access payroll data for personnel in your Gusto account.

11. Click Payroll > Categories Mapping and turn the toggle ON if you want to allocate payroll to different categories by department or by personnel.

4. When is Gusto data available in Finaloop?

Once you’ve run payroll, it can take 1-3 days before you see the transactions in Finaloop.