.png)
Connect your HRIS to NetSuite, Sage Intacct, or Acumatica. See which payroll vendors offer the best GL integrations and how to configure them for accurate financial data.
Every month, finance teams at mid-market companies face the same challenge: reconciling payroll data from HR systems with their general ledger. The numbers should match. They rarely do on the first pass.
Manual journal entries. CSV exports. Copy-paste errors. Timing mismatches between when payroll runs and when entries post. These friction points aren't just annoying—they delay monthly close, create audit risk, and consume hours that finance and HR teams could spend on higher-value work.
The solution is proper HRIS-to-ERP integration. When payroll data flows automatically from your HR system to your general ledger—with the right account mapping, dimensional coding, and timing—reconciliation becomes verification rather than investigation.
This guide covers how to connect your HRIS/HCM system to mid-market ERP platforms like NetSuite, Sage Intacct, and Acumatica, including which vendors integrate best and how to structure the integration for clean financial data.
General ledger integration isn't a nice-to-have feature—it's a standard and expected part of any HRIS/HCM implementation. Here's why finance teams should insist on it:
A properly configured HRIS-to-ERP integration should:
When these elements work together, the monthly close process transforms. Finance teams verify that automated entries are correct rather than creating them from scratch.
For companies in the 100-2,000 employee range, three ERP systems dominate: NetSuite, Sage Intacct, and Acumatica. Each has different strengths and different approaches to HR/payroll integration.
Overview: NetSuite (owned by Oracle) is the largest cloud ERP for mid-market companies. It offers native HR and payroll through SuitePeople, but many companies prefer to use specialized HRIS platforms and integrate them with NetSuite's financial modules.
Native HR/Payroll option: SuitePeople Payroll provides full-service payroll for US employees, with native integration to NetSuite's GL. This is the simplest path if you want everything in one system—but SuitePeople's HR capabilities are less robust than dedicated HRIS platforms.
Integration approach: NetSuite has an extensive partner marketplace (SuiteApp.com) with pre-built integrations for major HRIS and payroll vendors. The platform's open API also enables custom integrations.
Key integration partners:
Integration considerations: NetSuite integrations often require Flexspring connectors (a third-party integration specialist) for the most robust automation. Flexspring's NetSuite-to-payroll connectors handle use cases including:
Implementation typically takes 8-10 weeks for a custom Flexspring connector deployment.
Overview: Sage Intacct is known for its dimensional accounting capabilities, making it popular with CFOs who need sophisticated financial reporting. The platform excels at multi-entity management and has strong traction in professional services, nonprofits, and healthcare.
Native HR/Payroll option: Sage Intacct Payroll (powered by ADP Workforce Now) provides an integrated solution for companies with 50+ US employees. This combines ADP's payroll processing with native Sage Intacct GL integration, developed collaboratively by both companies.
Integration approach: Sage Intacct Marketplace offers numerous HRIS and payroll integrations, with a focus on dimensional accounting that maps payroll expenses to departments, locations, projects, and custom dimensions.
Key integration partners:
Integration considerations: Sage Intacct's dimensional accounting is powerful, but integrations must be configured to take advantage of it. The best integrations map payroll data to multiple dimensions (department, location, project, class, etc.), not just basic GL accounts. This enables sophisticated labor cost analysis and departmental P&L accuracy.
Overview: Acumatica is the fastest-growing mid-market ERP, popular with construction, distribution, and manufacturing companies. The platform's consumption-based pricing (not per-user) makes it attractive for companies with many system users.
Native HR/Payroll option: Acumatica doesn't have native payroll—it relies entirely on partner integrations for HR and payroll functionality.
Integration approach: Acumatica Marketplace features certified integrations from major HCM vendors. The ADP Workforce Now Connector achieved Acumatica-Certified Application (ACA) status in 2024, setting a standard for integration quality.
Key integration partners:
Integration considerations: Acumatica excels at project-based costing, making it popular with construction and professional services. The best HRIS integrations support labor cost allocation to projects, enabling accurate job costing directly from payroll data.
Understanding the specific data flows helps you evaluate integration capabilities and configure them correctly.
What it does: After payroll processes, summarized payroll data automatically posts as journal entries in the ERP.
Data that flows:
Dimensional mapping: Journal entries should allocate expenses to:
Best practice: Configure the integration to create summary journal entries per payroll run per subsidiary—not individual employee-level entries (which creates unnecessary GL clutter). Summary amounts should be grouped by the dimensions that matter for your reporting.
What it does: When employees are hired, terminated, or updated in the HRIS, changes sync to the ERP automatically.
Data that flows:
Direction: Most implementations use HRIS as the system of record for employee data, with one-way sync to the ERP. Some implementations support bi-directional sync for specific fields.
Best practice: Ensure employee IDs remain consistent across systems. Mismatched IDs create reconciliation nightmares and break automated processes.
What it does: Time tracking data flows from workforce management systems through payroll to the ERP, enabling accurate project and job costing.
Data that flows:
Best practice: For project-based businesses, this integration is non-negotiable. Configure time data to populate corresponding work orders in the ERP so job costing reports reflect actual employee hours worked on each project.
What it does: Employee expense reimbursements processed through payroll automatically post to appropriate expense accounts in the ERP.
Data that flows:
Best practice: Map expense categories in the HRIS to specific GL expense accounts so reimbursements don't all land in a generic "employee reimbursement" account.
Here's how the major HRIS/payroll vendors integrate with each ERP platform:
Rating key:
1. Document your chart of accounts mapping Create a detailed mapping document that shows exactly which payroll data elements post to which GL accounts. Include earnings codes, deduction types, tax categories, and employer contributions.
2. Define your dimensional requirements Decide which dimensions you need for reporting:
3. Establish data ownership Decide which system is the source of truth for each data element. Typically:
4. Plan for timing Understand when payroll runs and when you need journal entries posted. Real-time posting is ideal, but scheduled daily or weekly syncs work for most companies.
1. Start with a pilot Run the first few payroll cycles in parallel—posting both automated and manual entries—to verify accuracy before going fully automated.
2. Validate dimensional mapping Run test payrolls and verify that expenses land in the correct departments, locations, and projects. Incorrect dimensional mapping creates more rework than incorrect totals.
3. Build reconciliation reports Create reports that make it easy to compare HRIS payroll totals to ERP journal entries. The ability to quickly verify—not recreate—is the goal.
4. Document the integration Create runbooks that document how the integration works, how to troubleshoot common issues, and how to handle exceptions.
1. Reconcile every pay period Even with automation, verify that journal entries match payroll totals. Catch issues early rather than during month-end close.
2. Monitor for drift When new earnings codes, deductions, or departments are added to the HRIS, ensure they're properly mapped in the integration. Unmapped codes often post to suspense accounts.
3. Review quarterly Each quarter, verify that year-to-date payroll totals in the HRIS match year-to-date payroll expenses in the ERP. Address any cumulative variances.
Problem: Companies select an HRIS based on HR features, then discover it doesn't integrate well with their ERP.
Solution: Include ERP integration as a selection criterion from the start. If your ERP is NetSuite, prioritize HRIS vendors with strong NetSuite integrations.
Problem: Payroll expenses post to the correct GL accounts but don't include department or location coding, making departmental P&L reports inaccurate.
Solution: Configure the integration to map all relevant dimensions, not just GL accounts. Test with sample payrolls to verify dimensional accuracy.
Problem: Companies with multiple subsidiaries configure the integration for one entity and assume it works for all.
Solution: Test the integration for each subsidiary. Verify that inter-company payroll scenarios (employees who work across entities) are handled correctly.
Problem: Companies assume automated integration means no verification needed.
Solution: Automation reduces errors but doesn't eliminate them. Build a lightweight reconciliation process that catches issues before they compound.
Problem: Companies automate journal entries but continue manually entering new hires and terminations in both systems.
Solution: Implement bi-directional employee data sync to eliminate duplicate data entry and ensure systems stay aligned.
When it works:
Examples:
Pros: No integration to configure; single vendor relationship Cons: HR/payroll features may be less robust than specialized vendors
When it works:
Examples:
Pros: Faster implementation; vendor-supported; proven track record Cons: May not support every custom requirement
When it works:
Examples:
Pros: Flexibility; can connect any systems Cons: Higher implementation effort; ongoing maintenance required
When it works:
Pros: Exactly what you need Cons: Most expensive; longest timeline; ongoing maintenance
When evaluating HRIS platforms, ask these specific questions about your ERP integration:
Do you have a pre-built integration with [NetSuite/Sage Intacct/Acumatica]?
What data flows automatically?
How is dimensional mapping handled?
What's the timing of data sync?
What does implementation involve?
How are integration issues supported?
Need help selecting an HRIS with the right ERP integration? OutSail advises companies on HR technology selection, including evaluating integration capabilities with your existing financial systems.
