A good pay run starts before pay day
Payroll is easier to manage when the information has a clear path. Decide how timesheets, leave, allowances and approvals reach the person processing pay, set a cut-off and give managers enough time to resolve questions before the pay run is due.
This routine protects employees and owners alike. It makes the work visible, avoids last-minute assumptions and creates a repeatable record for each cycle.
Payroll checklist for each cycle
The exact steps depend on your employment arrangements and software, but the following prompts help create a dependable process.
- Collect approved hours, leave and any variable payments by the agreed cut-off
- Confirm new starters, leavers or changed details have been approved
- Review pay items, deductions and allowances using confirmed instructions
- Process the pay run and issue payslips on time
- Prepare superannuation and Single Touch Payroll records where applicable
- Reconcile wage payments and retain the supporting payroll records
Keep payroll connected to the books
Payroll costs affect cash flow, BAS information and the operating picture of the business. Current payroll records and regular reconciliations help make sure wages, super and PAYG information are not separated from the rest of the bookkeeping process.
Do not rely on bookkeeping support for award interpretation, employment-law advice or HR decisions. Use qualified employment advisers for those questions and provide confirmed instructions to the payroll process.
Build a routine you can keep
The most useful bookkeeping habit is the one that is repeated. Set a regular time to collect source documents, review transactions and ask questions while the detail is still familiar. This is usually more effective than a large clean-up close to a BAS deadline.
A bookkeeper can help design the routine and keep the records current, but business owners still play an important role in approving information and explaining transactions that are not clear from a bank feed.
Know when to ask for specialist advice
Bookkeeping and BAS support are practical services, not a substitute for legal, employment or income-tax advice. Where a question involves awards, contracts, business structure, tax planning or a complex tax position, confirm it with an appropriately qualified adviser.
Linda Kops is a Registered BAS Agent (registration number 26001801). BAS services are provided within that registered scope, with clear records giving your accountant or tax adviser a better starting point.