Software
Accounting software in Nepal and how payroll should connect to it
Accounting and payroll meet at one journal a month. Getting that posting right removes most of the reconciliation work between them.
Updated August 2026
Payroll is usually the largest single cost line a Nepali organisation posts each month, and it is the one most often re-keyed by hand. Getting the connection between payroll and the ledger right is a small piece of configuration that removes a recurring monthly task.
What accounting software needs locally
- A fiscal year running Shrawan to Ashad, with period-end processes aligned to it.
- Bikram Sambat dates available on documents and reports alongside Gregorian.
- VAT handled to the local requirement, including invoice format and returns.
- Reporting in the formats your accountant files with the Inland Revenue Department.
- An audit trail on posted entries, with reversal rather than deletion.
The monthly payroll journal
Payroll should post one journal a month that fully describes the cost and the liabilities it created. Every figure in it comes out of the payroll run, so nothing needs re-keying.
| Line | Type | Source |
|---|---|---|
| Salary and wages expense | Debit | Total gross pay |
| Employer retirement contribution expense | Debit | Employer share of contributions |
| Retirement fund payable | Credit | Both employee and employer shares |
| TDS payable | Credit | Total tax withheld |
| Net salary payable | Credit | Total net pay to be disbursed |
Reconciling payroll to the ledger
If all five reconcile, payroll and the ledger agree and no further checking is needed. If one does not, the difference points directly at which step to look at.
- 1Total gross in the payroll register equals salary expense posted.
- 2Employer contribution expense equals the employer share on the contribution schedule.
- 3Retirement fund payable movement equals contributions remitted in the period.
- 4TDS payable movement equals tax deposited with the IRD.
- 5Net salary payable clears to zero once the bank file has settled.
How much integration is worth building
A monthly summary journal is usually enough. Posting per-employee detail into the general ledger creates volume without insight, and puts salary information into a system where more people can see it.
Where cost centres matter, splitting the journal by department gives management the analysis they want while keeping individual salaries inside payroll.
Who should see salary data
Payroll is the most access-sensitive data an organisation holds, and the accounting system usually has the broadest user base. Those two facts pull against each other, which is the practical argument for posting a summary journal rather than per-employee detail.
A finance team needs the total cost, the liabilities and the departmental split. It does not need to see what any individual earns in order to close the month. Keeping individual figures inside payroll, where access is narrower, gives finance everything it needs without widening exposure.
- Post totals and cost-centre splits, not per-employee lines.
- Keep payroll access limited to the people who run it.
- Where an auditor needs detail, grant it in payroll rather than copying it into the ledger.
- Log who viewed or exported payroll detail, not only who changed it.
Frequently asked questions
Should payroll post individual salaries into the accounting system?
Usually not. A monthly summary journal, split by cost centre where needed, gives finance what it needs. Posting per-employee detail adds volume and puts salary data in a system with broader access.
How do you reconcile payroll to the ledger?
Check five things: gross pay against salary expense, employer contributions against contribution expense, fund payable movement against contributions remitted, TDS payable movement against tax deposited, and net salary payable clearing to zero after disbursement.