EFT Flow vs QuickBooks Direct Deposit
QuickBooks has built-in payroll with direct deposit. It's convenient.
Here's when it makes sense—and when EFT Flow is better.
Understanding QuickBooks direct deposit options
QuickBooks offers direct deposit through different products:
QuickBooks Online Payroll
- Core: ~$50/month + $6/employee
- Premium: ~$85/month + $9/employee
- Elite: ~$130/month + $11/employee
- Direct deposit included in subscription
QuickBooks Desktop Payroll
- Enhanced: ~$50/month + per-employee fees
- Assisted: ~$110/month + per-employee fees
- Direct deposit available as add-on
Key point: QuickBooks payroll is full-service. It calculates taxes, files returns, and handles compliance. Direct deposit is one piece of a larger (and more expensive) service.
Head-to-head comparison
| Feature | QuickBooks Payroll | EFT Flow |
|---|---|---|
| Base cost | $50-130/month | $95/month |
| Per-employee/transaction | $6-11/employee/month | $0 |
| 10 employees | $110-240/month | $95/month |
| 25 employees | $200-405/month | $95/month |
| Calculates taxes | Yes | No (you provide net amounts) |
| Files tax returns | Yes | No |
| Vendor payments | Limited/separate | Yes |
| Works without internet | No (cloud-based) | Yes (desktop app) |
| Lifetime option | No | $2,990 once |
Different tools for different problems
This comparison isn't entirely fair. Here's why:
QuickBooks Payroll solves
- Calculating gross-to-net pay
- Withholding the right taxes
- Filing T4s and ROEs
- Remitting to CRA
- AND depositing pay
It's a full payroll service. Direct deposit is just the delivery mechanism.
EFT Flow solves
- Getting money from your bank account
- Into someone else's bank account
- Without manual entry
- Without per-transaction fees
It's a payment tool. You calculate the amounts; EFT Flow delivers them.
The real question: Do you need QuickBooks Payroll's full service, or do you already have a way to calculate pay and just need a cheaper delivery method?
When QuickBooks Payroll makes sense
- You need full payroll service: Tax calculations, T4s, CRA remittances
- Compliance is worth paying for: Errors in payroll taxes are expensive
- Small team, simple payroll: Under 10 employees, straightforward situation
- You're already paying for it: It's part of your QuickBooks Online subscription
- No internal payroll expertise: You need guided calculations
The value proposition: QuickBooks Payroll's cost isn't just for direct deposit—it's for the entire payroll service. If you need that service, the direct deposit is essentially free.
When EFT Flow makes sense
- You already calculate payroll: Using a spreadsheet, accountant, or other software
- You pay more than employees: Vendors, contractors, suppliers—not just payroll
- Volume makes per-employee pricing painful: 20+ employees, the math doesn't work
- You use QuickBooks Desktop: And don't want to pay for the payroll add-on
- You have an accountant: They handle payroll calculations; you just need to pay people
- You're a bookkeeper: Processing for multiple clients with different setups
The hybrid approach
Many businesses use QuickBooks for accounting but handle payroll differently:
- Calculate payroll with a simple calculator or spreadsheet
- Record the journal entries in QuickBooks
- Export the payment list
- Process through EFT Flow
Total cost: QuickBooks Simple Start ($20/month) + EFT Flow ($95/month) = $115/month
vs QuickBooks Online Payroll: $110-240+/month for 10 employees
Vendor payments: the hidden gap
QuickBooks Payroll is for employees. What about everyone else?
- Suppliers and vendors: QuickBooks Payroll doesn't help
- Contractors: Different tax treatment, often not in payroll
- Owner distributions: Not employee payroll
- One-time payments: Bonuses, settlements, refunds
EFT Flow's advantage: One tool for all payments. Employees, vendors, contractors, anyone with a bank account. Same process, same flat fee.
Options for QuickBooks users
Keep QuickBooks Payroll
Use it for employee direct deposit. Add EFT Flow for vendor payments that QuickBooks doesn't handle.
Downgrade and switch
Drop to basic QuickBooks (no payroll). Calculate payroll separately. Process all payments through EFT Flow.
Keep for compliance only
Use QuickBooks Payroll for tax calculations and filings. Export net pay and process the actual deposit through EFT Flow.
Full switch (if appropriate)
If you have payroll expertise or an accountant handling calculations, use basic QuickBooks for books and EFT Flow for all payments.
FAQ
Is EFT Flow a replacement for QuickBooks Payroll?
Not exactly. QuickBooks Payroll calculates taxes and handles compliance. EFT Flow just moves money. If you need full payroll service, you still need something to calculate the amounts. EFT Flow replaces the payment delivery, not the payroll calculation.
Can I export from QuickBooks Online to EFT Flow?
Yes. Export your payment list (employees or vendors) to Excel from QuickBooks Online. Import that file into EFT Flow. Generate the bank file. The process takes about 5 minutes.
What about tax filings if I don't use QuickBooks Payroll?
You'd need another solution for T4s, ROEs, and CRA remittances. Many businesses use an accountant or a separate payroll calculator. EFT Flow handles payment delivery, not tax compliance.
Is the savings worth the extra work?
Depends on your situation. At 25 employees, you might save $150-300/month switching to EFT Flow—but you'd need to handle payroll calculations yourself. If you have the expertise (or an accountant), the savings are significant. If not, the full-service approach may be worth paying for.
What about same-day direct deposit?
QuickBooks Payroll offers same-day deposit on some plans. With EFT Flow, timing depends on your bank's processing schedule (typically next-day if uploaded before cutoff). If same-day is critical, verify your bank's capabilities.
See if EFT Flow fits your workflow
Download the trial. Export a payment list from QuickBooks. See how it works before making any decisions.