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01 May
Bookkeeping for Your Business
However, without the right systems and processes in place, major mistakes can be made and certain goals can’t be reached. In many cases, a lack of good bookkeeping can cause compliance issues, especially when it crosses over with important areas of legislation such as payroll management.
Record Keeping is Law
Bookkeeping is also known as record keeping, and while it’s no one’s favourite task, the reality is that it’s vital for any business. By law, every business is required to maintain accurate and timely records.
The ATO requires businesses to keep records for a minimum of five years, and they must be accessible upon request.
These records include:
- Invoices and receipts you provide for sales or services
- Invoices for goods, services or other business acquisitions
- Records of payments made to employees and other organisations on their behalf, e.g. superannuation and PAYG tax.
- Financial statements, e.g. profit and loss statements and balance sheets
- Tax return information
- Bank and credit card statements
- Stock records at end of financial year and asset register
- Anything else with a monetary value to the business
Businesses require accurate records of employee details in order to pay wages as well as associated payroll taxes accurately, consistently and on time. Good record keeping is essential in order to avoid costly payroll mistakes, especially with big businesses that have hundreds of employees.
Ensure that you file employee details in a secure place and check them regularly for accuracy. Keep up to date with yearly changes to payroll tax and complete annual reconciliation forms as required. Many businesses today mitigate the risk of making payroll mistakes by outsourcing or using quality payroll software.
By outsourcing important backend functions or automating the process using software, business owners can spend more time focusing on the core elements of their business such as growth. The needs of each business differ, so it’s worth comparing the options to determine the best solution.
Aussiepay - Quality Software and Outsourced Payroll Solutions
Aussiepay is Australia’s largest owned and operated payroll provider, with more than 24 years of experience. With a tailored, fully outsourced service as well as a software solution on offer, we can find the right choice for you. If you’d like to talk about how we can help you with your payroll, get in touch today by calling 1800 729 765 or contact us online.