Many business owners feel overwhelmed when they have to deal with payroll. However, many business owners often ask whether a bookkeeper can do payroll or not. The blog will share information on whether it would be beneficial to ask your bookkeeper to do your payroll.
Can a Bookkeeper Do Payroll?
The short answer is ‘Yes’. A bookkeeper can manage payroll functions. Payroll is the process of distributing payments to workers at an agreed rate and according to designated award rates. The following are the most common payroll tasks performed by a payroll expert or a bookkeeper:
- resolve payroll discrepancies
- reconcile payroll tax
- compile summaries of earnings, disabilities, deductions, benefits, leaves, and non-taxable earnings for financial statements
- adhere to payroll policies
- manage PAYG withholding
- set up single-touch payroll
- ensure all payroll transactions are processed accurately and at the right time
- contribution to super funds on behalf of employees
Benefits of Bookkeeper Managing Payroll Tasks
As a new business owner, you have to deal with numerous tasks and tax obligations. You will have to make super contributions and payroll. It would be worth getting bookkeeper services in Melbourne for your business as bookkeepers will manage bookkeeping tasks along with payroll tasks.
- A bookkeeper who knows about business finances can ensure consistent financial management and record-keeping, including payroll.
- It would be a cost-effective way to manage the payroll of a company.
- You can enjoy having robust financial systems and processes.
- You will get relief knowing that your financial records are in safe hands.
Difference between Bookkeeping and Payroll
Bookkeeping and payroll concepts are different. Bookkeeping is the process of recording and managing all financial transactions, including purchases, sales, and payments. On the other hand, payroll focuses on processing worker wages, complying with employment law and withholding taxes. Sometimes, accounting is also used interchangeably with bookkeeping and payroll. However, accounting is different from bookkeeping and payroll.
What Does a Bookkeeper Do?
When it comes to financial management, ensuring your workers are paid accurately can be challenging. For this reason, it would be better to seek help from a professional bookkeeper who will not only be responsible for managing business books but also manage the payroll of a company.
- Payroll Services
A professional and experienced bookkeeper will most probably provide a payroll service that will include superannuation management. If you want to ensure your company is compliant with STP requirements, it would be beneficial to seek help from a professional bookkeeper.
- Financial Record Management
Bookkeepers ensure to record and manage all financial transactions. In addition to this, they will also suggest where you can save more while keeping an eye on profits. They help you make the right decision for your company by providing accurate financial records. By choosing bookkeeping for small business, you can be sure that your business books will remain updated and accurate because of a professional bookkeeper.
- Financial Systems and Processes
Apart from providing payroll services, you can also rely on bookkeepers to manage your financial systems and processes. Bookkeepers can help you prepare financial records to ensure you meet tax requirements. Bookkeepers often work with small business tax accountants at the time of tax return lodgment because an accountant needs updated records to prepare and lodge tax returns.
- Accounts Receivable and Payable
It is crucial to manage incoming and outgoing payments. It includes tracking outstanding receivables, invoicing clients, and ensuring supplier invoices are paid on time.
- Budgeting
Bookkeepers help in creating a budget and forecast allowing the business to plan for future revenues and expenses. Tracking financial performance helps in making necessary adjustments.
- Bank Account Reconciliation
It is vital to reconcile your bank accounts more frequently to spot and resolve discrepancies (if any). This process ensures the accuracy of financial statements and helps in identifying any fraudulent activities.
- Compliance
Bookkeepers ensure to meet all employment laws. It includes understanding overtime regulations, minimum wage laws, and record-keeping requirements to avoid legal issues.
Conclusion
Now that you know that if a bookkeeper has an understanding regarding payroll, then they can manage the payroll of a company. If you are looking for Reliable Bookkeeping Services and payroll services, you can contact us.