How Bookkeepers Manage the Payroll of Businesses
Written by Bindi Gethen
If you’re pondering over the decision to let a bookkeeper manage your payroll, keep in mind that isn’t just a matter of delegation. It’s about recognising where your true strengths lie and where your time is best spent. And, let’s face it, unless you get a weird thrill out of tax codes and financial regulations, payroll might not be your jam.
So can a bookkeeper do payroll in Australia? While a bookkeeper can certainly handle the payroll of businesses, it’s essential to ensure they’re qualified, registered as a BAS agent, and informed about ongoing changes in regulations and requirements.
Can a bookkeeper do payroll in Australia?
Everyone looks forward to payday. But there are some key things you need to keep in mind to make sure you’ve got everything covered and can do the best job possible.
In Australia, the role of a bookkeeper is traditionally understood as one that focuses on recording financial transactions, ensuring accuracy, and preparing financial statements. There’s nothing that prevents a bookkeeper from handling payroll. In fact, with the growing suite of digital tools available, many aspects of payroll have become more accessible to those outside of the specific realm of Human Resources.
A bookkeeper, with the right training and bookkeeping software, can indeed manage payroll functions. However, it’s imperative to remember that payroll isn’t just about disbursing salaries. It encompasses a deep understanding of taxation laws, superannuation, employee entitlements, and more.
Australia has its unique set of regulations in this regard, with the Fair Work Commission and the Australian Taxation Office setting specific guidelines and requirements. A simple error in payroll can lead to significant financial and legal repercussions.
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Everything You Need to Know About Bookkeeping
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What bookkeepers need to consider
1. Qualifications and training
It’s crucial for a bookkeeper handling payroll to have the right qualifications and training. This ensures that they can navigate the complexities of Australia’s Superannuation Guarantee, Fair Work standards, and other related regulations efficiently.
Pro tip
If you're a bookkeeper, check out local courses or online platforms. These will help you improve your skills and give business owners confidence in you.
2. Registration as a BAS agent
In Australia, if a bookkeeper wants to provide advice or services relating to a client’s tax liabilities, obligations, or entitlements, they must be registered as a Business Activity Statement (BAS) agent with the Tax Practitioners Board (TPB).
Look into the requirements for registration. Often, it involves a certain amount of relevant work experience and education. Start the application process and gather any necessary documents.
Pro tip
Registered BAS agents have access to a community of professionals. This network can be invaluable for sharing best practices, seeking advice, and collaborating on intricate payroll challenges.
3. Bookkeeping software
Australia has specific requirements for payroll, such as Single Touch Payroll (STP) reporting. We recommend that you do your research on popular bookkeeping software. Many offer trial periods, so test a few out to see which one you find most intuitive and fits your needs. At our agency, we like to incorporate Xero in our bookkeeping packages.
4. Continuous learning
The finance world has new twists and turns regularly, so you have to stay updated to stay ahead. For our fellow virtual bookkeepers, we recommend that you set aside time monthly or quarterly to check for updates in the industry. Consider subscribing to financial news outlets, joining a professional association, or setting up Google Alerts for relevant topics.
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Why You Shouldn’t Learn Bookkeeping On Your Own
Let The Bookkeeping Studio make your payroll process as seamless as possible
We all need a bit of help sometimes. It doesn’t make us any less competent; it just means we understand our business priorities. After all, life’s too short to get lost in all the paperwork of payroll, so it’s time to bring in the pros.
Let The Bookkeeping Studio give you back those precious hours so you can focus on what you do best: making sure your dream business runs smoothly. Trust The Bookkeeping Studio with your business finances today.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
