Processing pay runs becomes a pleasure with MacBusiness Payroll. The software automatically calculates tax, student loan, child support and KiwiSaver deductions, and produces all the reports.
Not having a good bookkeeping system in place – that would provide warning signs that the business could run out of cash – is one of the main reasons businesses fail.
You can choose to set up a bookkeeping system manually (using accounting books), electronically (spreadsheets) or use accounting software. Unless you want to get familiar with bookkeeping practices, accounting software is the most efficient choice.
What to consider
Every business will have different requirements from an accounting software. When choosing an accounting software consider the following questions:
Software options
There are many software packages on the market that allow business managers to successfully control records without an accounting degree. Some of them, such as Free Accounting Software, have no cost. Some commonly used accounting systems used by small businesses are:
Software to manage Single Touch Payroll requirements
From 1 July 2019, businesses with fewer than 19 employees are required to report tax and superannuation information directly to the ATO (larger employers with 20 or more employees began reporting requirements earlier). This is known as Single Touch Payroll (STP).
If you are already using accounting software, STP reporting should be built in. You can see a full list of STP solutions here.
If you are not already using accounting software, the ATO has compiled a list of low or no-cost STP solutions costing $10 or less per month.
Getting adviceBusiness Accounting Software With Payroll
If you're unsure which software to choose, talk to your accountant or business adviser. It's worth checking to make sure the package has Standard Business Reporting forms needed to report to the ATO such as BAS statements.
It's also a good idea to ask other business owners what they use. If you don't know any, the Business Victoria Facebook group is always happy to answer your questions.
Setting up a bookkeeping system
When you set up your financial records, you need to make sure they meet any compliance requirements such as GST or other tax compliance.
This is done through setting up classifications, also known as a chart of accounts. A chart of accounts is a listing of all the accounts needed to cover the financial transactions of the business. Classifications are used to separate profit and loss calculations to show where a business is making or losing money. It's also used to determine the overall financial position of a business in a balance sheet.
How to set up a chart of accounts
The chart of accounts is very important to the overall effectiveness and accuracy of your bookkeeping. If you don't feel you understand it enough, then you should discuss this in further detail with your bookkeeper or accountant before setting up your bookkeeping records.
When setting up a chart of accounts, you'll need to:
Small Business Accounting And Payroll
![]() Small Business Accounting Software For Mac With Payroll Free
Accounting packages have predefined chart of accounts which you can allocate to your own financial transactions.
Use our example chart of accounts below as a reference, and if you're not feeling confident, your bookkeeper or accountant can help set up a meaningful chart of accounts for you.
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