Bookkeeping tips: how to manage your payroll

Do you want to update and refine your payroll system? Here are # tips that are sure to help!

Quick-fire payroll tips:

• Decide when and how often you wish to pay your employees
• Pay extra attention to detail
• Be aware of deadlines
• Invest in good bookkeeping software
• Get the right training
• Keep up with the law and be aware of updates and changes

1. Consider outsourcing your payroll to a bookkeeping team in Melbourne

If you don’t have a professional bookkeeping or accounting qualification you should seriously consider outsourcing your payroll to a professional bookkeeping team in Melbourne like Maximum Business Solutions.

Being in charge of your payroll and not knowing all the rules and responsibilities that are involved with payroll is a massive disadvantage to your business and leaves you in a dangerous position.

Our expert bookkeeping team is detail-orientated, offering you complete care and management of payroll.

2. Classify your workers correctly

Deciding whether your workers are employees or contractors is a critical decision you must take with care when making the classification. Here are the main differences between employees and contractors.

Delegate or subcontract work

This is pretty simple. Employees cannot subcontract out their work to a third party, but a contractor can.

Basis of payment

Employees are paid based on hours of work, a price per activity, or a commission. Contractors provide a quote to an employer for a specific task which must be completed.

Equipment

Usually employers provide their employees with equipment and tools needed for their work. Contractors typically provide their own equipment.

Other differences

Employees are not legally responsible for their work and take no commercial risks, however they also have no control over how you, the employer, want the work to be done and aren’t independent of your business.

Contractors are legally responsible for their work, have control over how they work and are independent of your business.

ATO’s decision tool

The Australian Taxation Office (ATO) has a handy tool on their website to help you classify your workers. Click here to use their tool and see which is the best classification for your workers.

3. Get the right payroll and bookkeeping software

Choosing a software provider for your business is a great way to manage your payroll and stay organised with your bookkeeping.

MYOB bookkeeping

MYOB software is an incredible bookkeeping software provider with the latest innovative technology. It’s easy to use software is what makes it one of the commonly used software in Australia, with millions of Australian businesses satisfied with its interface and services.

Xero bookkeeping

Xero is an exceptional cloud based bookkeeping software provider. Its tagline, “Beautiful accounting software” rings true, while its simplicity is highly coveted by business owners all over the world.

Many are making the switch to Xero, and you can join the movement too!

4. Get the right Xero and MYOB training

As both a Xero and MYOB partner, we can provide you and your team with the right training that arms you with the knowledge to manage payroll yourself moving forward.

The latest software and tools are critical to providing your business the most streamlined bookkeeping and payroll support!

Get on the right track when it comes to payroll!

Once you find your groove, payroll will become a streamlined operation within your business, but until then, perhaps you need a little guidance?

Engage the skill of trusted bookkeepers in Melbourne and choose Maximum Bookkeeping Solutions. Managing every aspect of your business’s bookkeeping (or arming you with the knowledge to manage it yourself!) we’re here for you each step of the way.

Organise your first consultation or give us a call today – we’d love to chat!