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Paying Several Employees With One Payroll Payment

MYOB and Xero now make payroll easier to manage

myob and xero online payroll management
Struggling to manage your online payroll management? Our Xero and MYOB courses will help you get the most out of this software so you can manage payroll in house.

MANY COMPANIES OUTSOURCE PAYROLL because it contains many moving parts. For instance, there’s the payment of wages each week or fortnight or month, sure. But there’s also superannuation contributions, PAYG obligations, annual and sick leave accrual. 

Fortunately, most accounting apps like Xero and MYOB have made payroll easier to manage, particularly if you only have a handful of employees.

Superannuation clearing houses

Nearly every major cloud accounting package has a connected superannuation clearing house within its payroll package. Xero and MYOB are both SuperStream compliant, a government initiative to help business owners tell which accounting software apps will let them make electronic superannuation payments. And QuickBooks uses a partner payroll system which is also SuperStream compliant.

Batch wage payments

Electronic superannuation payments are one way that paying staff is made easier, but paying a dozen or so employees individually each week or fortnight can be tedious. Fortunately, both Xero and MYOB have a ‘pay run’ function that lets you make batch wage payments. This eliminates the tedium of paying employees individually, as well as the potential for error.

Accounting software calculates entitlements

MYOB, Xero and QuickBooks, if you’ve set up your employees correctly and have the appropriate payroll subscription, will also calculate your employees’ sick and annual leave entitlements, also reducing the time it takes to process payroll and the potential for error.

Our MYOB training courses and our Xero training courses both cover payroll, where you’ll learn how to set up employees correctly, process wage payments and more. Using a cloud accounting program for payroll, saves time and reduces errors. Visit our website for more information.

EzyLearn courses now include real life case studies

managing ad hoc payrollAt EzyLearn we are constantly refreshing the content of our online training courses. Relevant to those of you doing Payroll, might be our Excel Ad Hoc Payroll case study which is part of our Intermediate Excel Online Training Courses. Where possible, we draw on real-life case studies as examples, to help you learn, and apply your skills, in a relevant way that makes sense. Visit our Micro Courses page to learn more.

 

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Should You Take Out a Loan to Avoid Delaying Payroll Payments?

Repayments on a business loan may be less than super and PAYG combined

Small business loan to finance PAYG and super
It’s not uncommon for small businesses to take out a business loan to meet their super and PAYG obligations – but this should never be a knee-jerk reaction to lean times.

IN A PREVIOUS POST we talked about taking out a business loan to cover payroll if you anticipate that you won’t have enough funds to do so otherwise.

Naturally, it’s always better to use your business’ own funds to meet your obligations, whether it’s paying staff or suppliers. This said, getting a business loan to cover payroll can be a good idea for small and growing businesses in certain circumstances. We look at these now.

Loan repayments are usually small

Depending on how many employees work for you, the repayments on a business loan are typically smaller than all of your payroll obligations — this includes superannuation and PAYG — combined. If you get a loan to fund 12 months of your business, payable over a 24 or 26 month period, the repayments will be far easier to manage each month.

Interest is usually a tax deduction

Businesses are able to claim the interest from any business loan as a tax deduction, so even if the annual percentage rate (APR) adds a few additional thousands of dollars to your capital amount over the period it takes to pay the loan back, the interest will still go towards reducing your taxable income.

This is a more favourable option to delaying payment to your employees (illegal) and delaying payment of PAYG and superannuation withholdings, which could incur a Failure To Lodge (FTL) penalty, plus a general interest charge (GIC). Note: Fines and penalties cannot be claimed as a tax deduction and are therefore dead money.

Do your sums first

taking out a small business loanDon’t forget that, while a business loan to cover payroll for 12 months will be easy to repay initially, your business’s profits will need to improve substantially over the next year so that you can continue to meet your loan repayments AND your payroll obligations for that year.

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You can easily work this out using Microsoft Excel. Our Intermediate Microsoft Excel training courses show you how to determine if you can afford to take out a mortgage, but because all of our fields remain “unlocked”, you can easily modify them to suit a business loan scenario. Visit our website for more information on all of our Excel training courses.

 

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Our online training courses feature real-life case studies to make our learning more relevant and true to life.
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Turn Your Wage Payments into a Business Loan

Only Managing Payroll on an Ad Hoc Basis? We Show You How

managing ad hoc payroll
If you know that you can’t quite make payroll, a short-term business loan may see you through and avoid penalties.

WE’VE RECENTLY UPDATED THE course content in our Intermediate Microsoft Excel training courses to include a workbook and spreadsheet (that you can use in your own business) showing you how to manage ad hoc payroll using Microsoft Excel. This will enable you to calculate your PAYG and superannuation obligations in Excel.

Using Excel to work out your PAYG and super obligations is a great way for small businesses, with a small number of employees, to save money. It saves you having to purchase this extra module in MYOB or Xero, for instance, when you may rarely use it. Saving money for small business is crucial as often it’s these same small businesses that have trouble making payroll payments each week, fortnight or month — and then wind up incurring further fees from the ATO when they’re late with their reporting and payments. It’s a vicious cycle.

When you can’t make payroll

If you’re finding it a stretch to make payroll payments, don’t worry, you’re not alone. Lots of business owners have trouble making payroll. But there are things you can do about it. We find that it frequently comes down to poor credit management processes or perhaps a downward trend in a business’ cycle that’s been missed due to poor or inefficient accounting processes. All of these can be rectified.

If the reason your business can’t make payroll is due to one or more shortcomings in your business’ operations, remedy the problems now. Similarly, if credit management is the issue, and late-paying clients are partially to blame, then tighten up or implement a credit management process. If it’s the result of bookkeeping that’s not up-to-date, find a bookkeeper to manage this for you.

How you can make payroll when cash is tight

Get financing. There are lots of ways to do this, but a common method, particularly if you need access to funds quickly, is to get a short-term business loan. Many short-term business loans don’t require businesses to have a great credit score, and will offer funding of as little as $5,000 right up to $500,000.

You’d have between 3 and 36 months to pay back the loan, but you need to be aware — the annual percentage rates (APR) are usually high. Most lenders require the business to have been active for a minimum of 9 months, and have revenue of more than $75,000 per annum. However, if paid off quickly, these can be an alternative to incurring penalties — it will obviously depend on your business’ individual circumstances.

Keep on top of bookkeeping

If you stay on top of your bookkeeping, you’ll either reduce the likelihood that you won’t make payroll, or as a worst case scenario, be able to foresee the periods when you won’t be able to, and be able to arrange finance in time to cover it.

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Use the Ad Hoc Payroll Guide included in our Intermediate Microsoft Excel training courses to determine the rate of PAYG tax to withhold — and the required super contribution amounts in Excel. Visit our website for more information on our entire suite of Excel training courses.

Xero online training course

At EzyLearn we offer online training courses to help you up-skill and find employment. Choose from our range of cloud-based online accounting software courses, to business start up and management courses, to marketing and sales courses, or update and further your skills in a range of Microsoft Office programs (Excel, PowerPoint, Word) or social media and WordPress web design). 

All of our online training courses can also be counted towards Continuing Professional Development points.

 

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EOFY: Organise Your Reports and Records

We Show You The Reports to Generate Now for End of June

profit and loss statements P&Ls
Now’s time to take stock of the reports that need to be generated to keep you GST and tax compliant.

THE LAST QUARTER OF the 2016/17 financial year is upon us, so now is the time to organise your reports and records; including Profit and Loss Statements, Accounts Receivable and Payable, PAYG and Super payments. We’ve previously written about writing off stock and inventory and getting your business expenses in order. In this post we’ll take a look at the reports and records you’ll need for EOFY, which you’ll learn how to produce in our MYOB BAS Reporting and GST or Xero GST, Reporting and BAS training courses.

Profit and loss statement

Depending on the structure of your business, you may be legally required to include a P&L statement with your tax return or activity statements. Your tax agent will be able to advise you if your business will be required to file a P&L, which  requires all of your bookkeeping to be up-to-date before you can run it.

Even if you don’t have to file one with your activity statements or tax returns, it’s still a good idea to run a P&L for your own sake. A P&L statement identifies whether your business has made a profit or loss and which accounting period these occurred.

Accounts receivable, payable

Find out who owes money to your business and to whom your business owes money. This is obviously part of the credit management process, which any good business will have in place already, but it’s a good idea to keep a steady eye on what’s coming in and what’s going out as EOFY approaches.

PAYG, superannuation

The end of each quarter brings a lot of PAYG and superannuation reporting, but EOFY brings a double whammy of activity statements tax returns and PAYG and superannuation compliance. You’ll need to run these reports so your bookkeeper can complete the payroll component of your returns.

Inventory stocktake

If you sell goods, you’ll need to complete a stocktake of your business’s inventory so that any missing stock can be written off, and to ensure you’re starting a clean slate for the new financial year.

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Learn how to run the reports you’ll need for EOFY with our MYOB BAS Reporting and GST online training course or our Xero GST, Reporting and BAS training course.

Xero online training course

At EzyLearn we offer online training courses to help you up-skill and find employment. Choose from our range of cloud-based online accounting software courses, to business start up and management courses, to marketing and sales courses, or update and further your skills in a range of Microsoft Office programs (Excel, PowerPoint, Word) or social media and WordPress web design). 

 

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The Secret to an Error-Free BAS Report

What To Do So You Don’t Lose Money When Doing Your BAS – 6 steps

If your business is registered for GST, it means you have to file regular activity statements with the ATO, usually each quarter. A lot of business owners export their Business Activity Statement (BAS) data straight from their accounting software, like MYOB or QuickBooks, and quickly prepare their BAS’ that way. But this is an imprecise method, and one that could be costing you money.

Tracey Marino, an experienced bookkeeper based in Rockingham, WA, knows how important it is that businesses of all sizes keep their Business Activity Statements error-free so as not to end up costing business owners money.  Continue reading The Secret to an Error-Free BAS Report

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6 Questions You Can Ask to Find the Cheapest Bookkeeper

Questions can ‘weed out’ bookkeepers until you get your perfect fit

Job interview questions to hire a good quality cheap and local bookkeeper with MYOB or Xero experienceI have been reviewing the chat requests we receive via National Bookkeeping and it confirms my own thoughts about bookkeepers and the rates that businesses pay for good bookkeepers. These rates have a lot to do with overheads and qualifications — and often very little to do with experience. Allow me to explain.

Most of the daily transactions (see Daily Transactions Courses for MYOB and Xero) performed by bookkeepers involve data entry and coding. This data entry work is repetitive and once a new bookkeeper or accounts person understands the tasks, (which is often quite quickly) they can be performed over and over again with little variation except for client details and total hours worked (I’m assuming invoicing for services provided).

In the case of invoicing your contract bookkeeper could then provide reports and followup with clients to make sure your debtors management is sorted out.

The hardest thing for some small businesses is understanding how to weed out exactly the bookkeeper they need — and I hope these questions make your job easier. Remember, it’s often the answer that helps you find the right person.

checklist for job interview questions for bookkeepersThe questions you should be asking a prospective bookkeeper:

  1. How long have you been performing bookkeeping work?
  2. What type of bookkeeping tasks can you perform?
  3. Are you familiar with cloud accounting software and, if so, which ones?
  4. When are you available to do bookkeeping work?
  5. Where are you based?
  6. Do you have professional indemnity insurance?

I’m going to further break down these questions and show you the answers you should be looking for. Remember that our goal with this case study is to find the cheapest bookkeeper for daily transactions accounting.

1. Bookkeeping Experience

This was once the most important aspect of a bookkeeper’s resume for employers because it demonstrated that this particular candidate has experience that will benefit the business. If the bookkeeper you’re looking for has plenty of experience, then follow up with Question 3 regarding cloud-based functionality and whether they’ve used the latest versions of MYOB, Xero or Quickbooks.

2. Bookkeeping Tasks

This question is important because if someone is educated enough to complete and lodge your BAS, or even lodge your end of year financials, then they’ll want to be charging for the skills they have. You may as well get your accountant to do your bookkeeping if you are prepared to pay for someone with high skills education and experience. Many bookkeepers have plenty of experience doing accounts receivable and accounts payable and all of the steps in between so if it’s a cheap bookkeeper you want, then weed out the ones who can lodge your BAS for you. Read more about bookkeeping tasks.

3. Cloud Accounting Software

It’s important to know if your bookkeeper is familiar with accounting software that is accessible in the cloud because they may know some of the advanced features that comes with that — like integrations with other cloud-based services for project management, estimating, time billing etc. It may also come in handy because they’ll be able to work at home, or even from remote locations, and be more available at potentially lower cost (less travel time and cost).

4. Work Availability

Many bookkeepers will SAY that they’re available whenever you need them, but in reality they each have their own set of requirements and they may not want to say this right up front for fear of limiting their chances of getting your work. Some bookkeepers are mums (or dads) and they need to fit into school hours, while others are really looking for a full-time or part-time job. Some bookkeepers will be prepared to work at night and on the weekend (others may only work at these times) whilst some bookkeepers will only want to work during business hours.

We all need to manage the work-life balance that comes with leading a fulfilling life, and for some people, this includes working at night. Some bookkeepers want to spend time with their kids during the day and work when they have quiet time. Some bookkeepers work for multiple clients and can only fit you in one half day a week. It’s important to understand where your bookkeeper sits in this area.

5. Bookkeeper Location

This is a pretty big consideration, even in the modern times of cloud-based bookkeeping because your bookkeeper’s location can affect how busy they are or how long it will take them to get into your office to do their work. We’ve had some examples where some of our team members live miles from the nearest town; therefore to have to travel there takes time and considerable cost. If you have faith in remote contractors and are willing to work with a bookkeeper who works from home you may find you’ll get the most ideal bookkeeper and the best price — this is something I managed to do when I closed EzyLearn’s bricks and mortar training centres and instead went totally online!

6. Do you have Professional Indemnity (PI) Insurance?

This one is a biggie because if the bookkeeper has PI Insurance they’ll also have the trappings that comes with it like:

  • Professional association membership
  • CPD / CPE point requirements
  • Basic Education Requirements to attain their Registration

If a bookkeeper has PI insurance you’re probably talking to a Registered BAS Agent, as bookkeepers who attain this level of bookkeeping do so because they want to perform one of the most important tasks they can for a business — lodge the BAS. A Registered BAS Agent is governed by the same government authority that governs Tax Accountants — the Tax Practitioners Board (TPD). Indeed, many businesses already have a tax agent or accountant who is responsible for lodging their BAS. Therefore, I’ve found the biggest reason BAS agents are popular is because you know you’ll receive an excellent job on the tricky aspects of GST and Payroll, PAYG, Superannuation etc without paying accounting rates.

request-quote-for-myob and xero bookkeeping servicesI hope these questions help you filter a great bookkeeper from all the enquiries that come for your job ads and remember if you’re interested in finding a cloud-based bookkeeper, feel free to browse the National Bookkeeping Directory or Request a Quote.

 

 

 

 

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Payroll Advice: The Role of the Payroll Professional

There's a lot of aspects to payroll.
Sometimes the importance of payroll is underestimated.

When the national minimum wage increased this month, it got us thinking about the role the payroll professional plays in a business. Payroll is an important and often complex aspect of every business — and a topic we cover in our MYOB training course — but it’s often the most underestimated. So we decided to take a deeper look at the role of the payroll professional.

Payroll: There’s Quite a Lot to It

Even though payroll sounds easy enough — you just pay people their wages, right? — it’s actually not as simple as it sounds. As a payroll professional, you’re entirely responsible for understanding and interpreting the ever-changing regulations and legislation relating to payroll; as well as managing the demands of both the employer and employee.

And as such, payroll is not a simple task for the uninitiated; it requires a person with solid knowledge of PAYG and superannuation, as well as an understanding of Australian tax.

For instance, how do you ensure you’re making the correct contributions to an employee’s HECS or HELP debt? Or make sure super contributions are made correctly (and to the correct fund)? Are you certain your employees are being paid according to the correct modern award? Getting these things wrong is not just time-consuming to rectify, but can also incur fines to your company!

In a recent new book by Tracey Angwin called The Payroll Revolution (which has gone on to become an Australian best seller) Angwin discusses the responsibility of the payroll professional and offers practical and guided tips on Australian payroll.

Just some of the skills that Angwin suggests the payroll professional should possess are:

  • Strong people skills
  • AIS/payroll software experience (such as MYOB)
  • General email, word and excel skills
  • Strong understanding of superannuation and PAYG
  • Good knowledge of the Fairwork Act
  • Ability to work under pressure and to tight deadlines
  • Strong mathematical skills
  • Strong problem solving skills.

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We cover the technical side of payroll in our MYOB training course; the Australian Payroll Association website can also give you more information on payroll practices. We also highly recommend The Payroll Revolution.

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Video: Reconcile your bank account to your MYOB datafile

We use this blog to provide some free samples of our training materials as well as inform readers about the features of our online MYOB and Microsoft Excel Training Courses. Today I am going to demonstrate the key features about performing a bank reconciliation using MYOB and how our EzyLearn ANSWER student support service helps bookkeeping students.

A bank reconciliation in MYOB is what brings your MYOB datafile back to reality. Your bank statement shows the truth about what money has gone into and out of your bank account and provides you with the blueprint you need to reconcile your MYOB accounting system. The video below demonstrates that once you have performed all your Day-to-Day Transactions a bank reconciliation makes sure that you have entered all the information you need to. At the end of a bank reconciliation your MYOB data is correct and you can start to run reports and get some great up-to-date information about your business.

MYOB releases new versions of their software most years and usually at the beginning of each new tax year to coincide with new PAYG tax tables and they are currently going through a race to the cloud to compete with many new startups like Xero, SAASU, Reach Accounting and FreshBooks. Some times these upgrades haven’t gone smoothly and students ask us how to perform actions in our training workbooks using MYOB. To help students in these scenarios we launch EzyLearn ANSWERS in May 2011 and this is one of the results we release via our blog. There are many other support blogs we’ve written so feel free to search our blog for answers.

If you have subscribed to our blog and are reading this via email, click on the heading to get to our website to see the free training video.

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Accountants now refusing to recommend MYOB

As part of our commitment to create new training content every quarter for our online MYOB training course we’ve added some addendums to the bank reconciliation and payroll courses in line with the latest version of MYOB AccountRight Plus available. Many Accountants however are not recommending that their clients make the upgrade.

We received some complaints from students about issues they experienced with the MYOB Bank Reconciliation and Payroll Intro courses and as a result our Registered BAS Agent and MYOB Tutor, Jacci, went through the course and wrote some notes to help students come up with the correct results.

Just as we suspected after speaking with bookkeepers and accountants it appears there are major flaws with the current version of the software and it’s affecting the revenue of MYOB Professional Partners and Consultants (who are being encouraged not to share the information).

It’s times like these that we are all tested as trainers, installation consultants, bookkeepers etc to be confident that we are doing our best to use the software to provide the information that we need. It’s also a good time to understand the benefits of having alternative ways of working with your data (ie. using a spreadsheet like Microsoft Excel) to perform calculations for PAYG and Superannuation.

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Do you pay yourself but don’t use the Payroll feature of MYOB?

Australian Taxation office ato logo - payroll myob bas paygSometimes we use the EzyLearn Blog to inform readers about general course information. Today we’re announcing a new exercise file that is included in our Microsoft Excel Course 308 (which covers Macros) as well as the MYOB Payroll Course.

If you are a small business owner and you only have yourself or a handful of employees you might come across the dilemma about how to keep a record of payments you’ve made to yourself so that you can pay the correct amount of PAYG, Super etc. If your business is only small you may decide not to purchase and use the full MYOB AccountRight Plus version of MYOB accounting software and opt to keep Payroll records separately or in an Excel spreadsheet.

In a previous post we mentioned that one of our course content creators was working on a spreadsheet to help with PAYG and Super calculations for BAS reporting. Well it’s now ready (AND there’s more to come).

The Excel spreadsheet we have created enables you to enter the total amount that you have paid to an employee (or yourself) and calculates the PAYG and Superannuation that is payable for that amount (you can adjust the superannuation rate). All you have to do now is enter the payment into MYOB and your compliance is assured.

This file is handy if you pay yourself irregularly or differing amounts as you need it. Using this PAYG spreadsheet you simply enter the total amount you’ve paid yourself (or an employee) over the quarter and it finds how much you need to pay in PAYG and Super.

This excel file uses the VLOOKUP command in Microsoft Excel and the tax tables for weekly pay at the ATO website. If you are an existing student you’ll find the exercise file in the Excel 308 course (under the heading Handy Files). This course covers 3D formulas, CHOOSE, VLOOKUP, HLOOKUP, MATCH and INDEX, nested functions and how to protect worksheets.

Did you know that when you enrol into the EzyLearn online Microsoft Excel course that all levels are included for the one price? This also includes access to new content as it is created and you have lifetime access.

 

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MYOB Support Q&A: Entering Employee Payments Manually using Journal Entries

MYOB Support Q&A: Entering Employee Payments Manually using Journal Entries

MYOB Payroll Course - online training - Journal entries for manual staff payments

If you are a micro-business but you’ve want to pay yourself wages for tax reasons you don’t need to buy MYOB AccountRight Plus. You can enter the information into the system using Spend Money and Journal Entries.

The most important aspect of performing the staff payment task is knowing how much money you owe to the employee, the ATO and the employees Superannuation company. We created a simple spreadsheet to calculate the amount of PAYG, Super, and other Levys that are owed when you pay a staff member. This spreadsheet is freely available to all of our Microsoft Excel Course students.

Once you have this information you can take advantage of our MYOB Q&A Guide that we’ve just added to our MYOB online Payroll Course.

Please note that our MYOB Q&A service is designed to take questions from students about specific topics which may not be included in our course. We take these questions to our software specialists and produce a short instructional guide to help you with your real life need using Microsoft Excel, MYOB and WordPress.

If you want to receive regular updates about when this information is released, please subscribe to our EzyLearn Blog.

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Graduation & feedback for Online MYOB Training Course

Graduating Students

We want to send a congratulations to some of our students and their success in our online MYOB training course and all the best for their future using the software for bookkeeping and managing company accounts. If you are seeking new employment we also wish you the best in your searching, resume writing, applications and interviews. Congratulations to:

Katya (ACT), Katayou (NSW), Linda (QLD), Veronika (QLD), Jenny (VIC), Denise (NSW), Natalie (NSW), Jacqueline (WA), Sara (NSW), Gopan (NSW), Matthieu (QLD), Kelly (NSW), Rhonda (QLD), Sarah (WA), Pia (VIC), Wayne (QLD), Geri (WA), Kerry (VIC), Robyn (NSW), Darlene (NSW), Celeste (NSW), Michelle (NSW), Cassandra (VIC), Angela (WA), Erica (WA).

What students say

We also want to share some of the comments that current students have made regarding what they enjoyed most about our course and training material:

“My experience with Ezylearn was great. I am going to recomend your website to all my friends and family members”

Katayoun

“All of the course information and also the knowledge tests”

Geri

“(The best part of the course was) the walk through videos”

Celeste

“The explanations were good”

Gopan

“I thought the course was very thorough and easy to find information especially if I need to review a task… It was very convenient to do the course in my own time when i had available…. and at my own pace”

Veronika

“Having workbooks to supplement the videos and able to practise simple exercises. Also, the opportunity to be able the myob program for free rather than having to buy it”

Michele

“Steve is quite good and makes the video enjoyable and makes it easy for me to learn how to navigate around MYOB”

Linda

“Ease of use. Convenient – study when you feel like it and have the time to do it. The videos are easy to follow even though I was using a (different) version of MYOB than those in the videos. This didn’t seem to matter because differences between them were very basic, and are mostly only aesthetic”

Jenny

“Easy to understand”

Natalie

“Most of the course was good and the support documention is helpful so I can alway go back to it”

Denise

Scheduled Improvements

Don’t worry, we’re not sitting on our laurels just because students have praised our online training courses. There’s also lots of work to be done to make some parts of our courses even better and we want to let you know about them:

  1. New content for the online MYOB training course (including Payroll and Reporting)
  2. More practical Microsoft Excel exercises for things like PAYG and manipulating MYOB reports
  3. Demonstrations on how to perform some calculations in Excel and enter them manually into MYOB
  4. More website measurement statistics for WordPress courses using Google Analytics
Please feel free to send us some suggestions.