Business owners face lots of tasks and responsibilities every day, and BOOKKEEPING is just as important as making your sales, as they say, YOU MUST KNOW YOUR NUMBERS!
Hiring a professional bookkeeper will take away the burden of GST and many other things, including payroll.
Payroll is one of the most important activities bookkeepers do, and it involves many responsibilities, some businesses outsource bookkeepers for payroll only.
What is Payroll and why is it so important?
Payroll is the payment employees receive (whether they are casual, part-time, or full-time workers). Wages include salary, bonuses, commissions, allowances, fringe benefits, SGC, etc. Most amounts are taxable, other though, for instance, PAID PARENTAL LEAVE, it’s not. those taxes are withheld by the employer and paid at specific times (monthly, quarterly, semesterly, or annually). This tax withheld is classified as Pay AS You Go Withholding (PAYGW).
How can businesses manage their payroll responsibilities?
Firstly, having payroll software is a great start. It calculates for you the tax and superannuation amounts and can help you organise your STP lodgements. It is a quicker and more efficient way than calculating everything manually (besides, who does that any more?).
Before all information is entered into the system and the pay run is generated, the employee must have filled up the TFN form, so the bookkeeper or payroll officer can accurately allocate all pay items.
After each payroll, bank accounts should be reconciled, especially if the employees are more than a few. This will allow businesses to pick up any errors immediately and fix them. PAYGW must be reconciled as well, before paying the Office of State Revenue.
Being on top of your payroll is essential for all of these reasons, and also, employees want to be paid on time and correctly. This is why outsourcing good bookkeepers will get you the job done right with no hassles.
Contact us for help!
If you need help with your payroll and bookkeeping, get in touch today. At North Brisbane Bookkeeping we can assure you your payroll journey will be stress free and your books will look 100% accurate.