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Office 365 Account Understanding

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Trying to understand this and can't find a definitive answer yet so figured while I look I'd post a quick question to see if someone can answer in the meantime.

We have Office 365 Midsize Business.  Mainly we're using just the desktop office applications.  I'd like to move to use Sharepoint and Lync services as well but don't want to have multiple user accounts/passwords.  I know there's ADFS for a single sign on environment for this but don't want to get into that right now.  I'm a little unclear on what the AD Sync does.  I understand it syncs your accounts to Office 365 so you can license them as needed, but does this also sync the password or is that an additional item?  Ideally I just want the username/password to be the same for the local domain and the office 365 sharepoint and lync services.

What are the best options to achieve this with little to no cost?


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