HR & PayrollHR & Payroll• 9 min read

How to Connect HR and Payroll with Accounting

Payroll is not separate from accounting. Salaries, allowances, deductions and other employee costs affect expenses, cost centres and financial reporting, so integration is more efficient than manually entering the same numbers again.

Illustration showing HR and payroll integration with accounting

Where does payroll begin?

Before accounting entries, payroll depends on employee records, base salary, allowances, deductions, attendance, leave and monthly variables.

These elements determine the final payroll result.

How does payroll flow into accounting?

Diagram showing employee, attendance and payroll data flowing into accounting — The accounting result should originate from the same payroll data rather than being recreated manually.

✓ Employee records.
✓ Attendance and leave where relevant.
✓ Allowances and deductions.
✓ Payroll calculation.
✓ Payroll approval.
✓ Accounting posting.
✓ Allocation to departments or cost centres.

Why are cost centres important?

Management often needs more than the total payroll number. It may need labour cost by department, branch or project.

Connecting employees to organisational units and cost centres improves workforce cost analysis.

What is wrong with manual payroll posting?

Re-entering salary totals, allowances and deductions into accounting adds repetitive work and increases the chance of error.

The problem becomes more significant as employee numbers grow.

What does management gain?

✓ Employee cost by department.
✓ Payroll cost by branch or project.
✓ Less duplicate data entry.
✓ Faster month-end closing.
✓ Financial reporting connected to HR operations.

HR and payroll in NOZOM .cloud

Connecting HR and payroll with other business applications helps reduce the separation between operational and financial data.

Related articles

When Do You Need HR Instead of Excel? →How to Choose ERP →HR & Payroll →

Connect payroll with financial reporting

Use NOZOM .cloud to manage HR and payroll as part of a connected business environment.

Start your free trial