From XU Magazine, 
Issue 25

Payroll – Value or Cost?

Payroll can be the largest expense item on your clients’ profit and loss statement, with mistakes potentially costing your clients considerable sums of money. So why are so many businesses not placing the appropriate level of importance when deciding on the payroll solution to best suit their business needs. The decision should not be based on “how much does it cost” but the value your clients will get from their chosen payroll solution.

It is extremely important your clients are equipped with the payroll solution best suited to their needs and an online, cloud-based, payroll will be hugely beneficial to your clients.

Single Touch payroll (AU) has now been introduced to all size businesses who report to the Australian Taxation Office (ATO) each pay run. This means the ATO have full visibility over your required PAYG tax and superannuation liabilities.

A proven and trusted payroll solution is essential to payroll professionals. There are several imperatives you should look for when choosing your payroll software provider, it must:

  • Be compliant with all applicable payroll legislation, including the Fair Work Act, Taxation laws, Superannuation and Superstream and Single Touch Payroll reporting.
  • Operate easily and efficiently to provide you with the necessary business efficiencies to run your payroll.
  • Offer a wide range of reporting options to cater for your payroll and HR reporting needs.
  • Offer customer support available from payroll experts, by phone and email.

When you are reviewing your clients’ payroll processes there could be some areas of concern if they are:

  • Using excel spreadsheets to keep payroll records
  • Using an accounting system just for payroll
  • Making multiple manual payments like salary packaging, Centrelink payments etc being paid outside of payroll rather than part of the bank ABA.file
  • Handing out or emailing payslips rather than a secure employee login
  • Manually calculating and splitting the actual costs into different cost centres before entering into the general ledger
  • Leaving paper records everywhere, rather than stored online and available anywhere, anytime

All the above are great reasons to look at an add-on partner such as CloudPayroll or iPayroll. All that is required by you is to make the introduction as their trusted advisor, and CloudPayroll or iPayroll will do the rest.

The implementation is taken care of by CloudPayroll or iPayroll set up is customised to the client’s requirements and integrated with Xero, ensuring a smooth transition.

Before our clients migrated to CloudPayroll or iPayroll they had generally been using their old payroll system out of habit! Smaller businesses can be too busy to investigate alternative payroll solutions and often medium to larger business have many decision makers and it can be easier to stay with the status quo. That is where Accountants, Bookkeepers and Business Advisors have a role in influencing their clients to investigate improvements to make their life easier. Trust and support are paramount to payroll. So often we hear “I wished I had known this payroll was around before” and “this is so much easier than what I was previously using”.

Why leave it there?

To learn more about CloudPayroll

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