Tuesday, 25 Aug 2020
Businesses with a satisfied workforce need a standard payment and employee benefits system, which keeps them motivated and enthused. However, it is not easy to keep track of all the components of the wages, manage the leave records and abide by the state laws of NSW while making payments.
Consequently, payroll management and tax are handled by experienced and professional bookkeepers in Sydney for most small businesses. All professionals use the latest cloud-based payroll systems to steer clear from business bankruptcy and criminal lawsuits due to incorrect payments.
The advanced cloud-based systems make payroll management quick, easy and highly accurate. Thus using technology for payroll management has become a pre-requisite for competitive businesses in Sydney.
However, choosing the best system puts entrepreneurs in a tough spot as there are tons of them available online. So here is a rundown on how to choose the most suitable system for your business. However, before we move forward, let us understand the term.
The technology is being lapped up by small businesses because of the ease and convenience offered by it. Most bookkeeping companies recommend using the system as it is cost-effective and scalable.
The system is hosted on the cloud instead of an in-house server in Sydney, and it ensures an error-free and uninterrupted service over the internet. It allows all the employees to seek or update information at the click of a button instead of making rounds of the HR department.
These self-service portals make access to information a cakewalk. The vendor hosting the service should be picked up carefully and should be a renowned and experienced service provider.
The Single Touch Payroll has become mandatory in Australia, and it has brought forth new regulations. It is now obligatory for small businesses in Sydney to report payroll activity to the ATO after each payday.
The PAYG withholdings and superannuation contributions information has to be submitted online using the Standard Business Reporting format. Thus you must use payroll software that generates ATO-compliant reports.
A small business can also opt for accounting software which has an STP compliant payroll module. Your bookkeeper can help in determining whether you need cloud-based payroll software or integrated accounting software depending on the needs of your organisation.
A cloud-based payroll system should be able to do away with all the paperwork. It must be able to update all the employee records automatically and keep track of their leaves and entitlements.
It must record all the payments and incentives offered to employees, along with superannuation and fringe benefits. It should also keep data updated regarding terminations and retirements.
The software should have provisions for filing payroll tax in Sydney with ease and should automatically send out pay slip notifications and leave calculations. Thus your HR department doesn’t have to spend time on updating details every other day.
Your bookkeeper and the employees will be able to access real-time data on their mobile phones, and thus, can submit leave requests and claim reimbursements on-the-go. It helps in making sure that no piece of information is left unrecorded under the supervision of a bookkeeper.
Every small business has different needs which are dependent on their specific industry. If the payroll software can be tailored to suit the requirements of the business, then it can work more accurately.
Thus you must look for software in Sydney that can be easily customised to be effectively handled and used by the management. For example, if you have both part-time and full-time employees, then it should be able to manage the payroll according to the work hours.
It should allow the bookkeeper to choose different salary components for different job roles. Also, it should be user-friendly so that you don’t have to spend an extra amount on training your workforce to use it. Thus employees should be able to login directly and submit their applications or update their details.
A small business in Sydney may need accounting software to improve the accuracy and efficiency of financial reports. However, managing a separate payroll system can become a tedious task for the bookkeeper.
It can also add to the overall costs. Thus the payroll software which you pick must be able to integrate with third-party software without any hassles. Since payroll management is a significant aspect of bookkeeping for start-ups, you must get integrated software.
If your system is not able to integrate with the accounting software, then it can become an arduous activity to manually transfer data between the two systems.
The advanced cloud-based accounting software has an inbuilt payroll management system which can also help in solving the payroll challenges. It should have the ability to add new users and applications at any given time.
The modern award structure keeps changing for industries and the states and territories in Australia. At present, there are over 100 awards under different industry segments which can become confusing since a single entity can have employees who fall into different categories.
Thus you should have a payroll system which is updated to accommodate all the changes made in the awards structure being used in Sydney.
If a business fails to comply with the structure, then it can get penalised by Fair Work Australia and will have to bear losses in terms of back payments made to the workforce. Therefore the system you choose should be compliant with the modern awards structure. Your bookkeeper can aid in finding a compliant system.
The payroll system should have a robust and automated tax and superannuation calculation function. It should be able to determine the correct amount according to the taxes applicable in Sydney and credit the amount in the bank and superannuation accounts.
The employees should be able to get their forms from the system on time and should be able to upload the proof of expenses to claim reimbursements.
The collaboration between users should be smooth so that several managers and employees can access it at any time. It should be accessible from remote locations and must maintain the privacy and security of data at all times.
Cloud–based payroll systems have become a necessity to ensure precision and adopt changing technology. Your bookkeeper in Sydney can help you to find the right system for your business. If you need more help, then measure the system on the parameters mentioned above to make the best investment.
