You may have heard that STP is expected to commence for small employers (less than 20 employees) from 01/07/19.
Tax Office figures show that around 390,000 Australian small or ‘micro’ businesses (up to four employees) are currently not using payroll software, and around 25% of these are still running manual accounts. It is expected that many smaller employers will need to upgrade their current software and change their payroll processes in order to comply with STP efficiently.
While the ATO is looking for affordable options for these businesses to be able to upgrade, we are encouraging all of our clients to not just focus solely only on being STP compliant but to think more broadly about their software and bookkeeping requirements. It’s important to remember that the advantages of bookkeeping software apply to more than just payroll. There are several very affordable software options available for small businesses, and we have found that businesses who do change over to digital systems are finding significant time saving in operations like BAS preparation and daily data processing, not to mention the incredible business insights that good bookkeeping software can offer. One of the biggest advantages is greater efficiencies in following up on outstanding accounts – many modern bookkeeping software options makes this process automated for you. With cash flow so important for small business, having a better handle on this side of things will make a real difference for your day to day operations.
Now that the legislation has passed, as of 01/07/2019 businesses will be obligated to change over to digital processes. We’d love to help you avoid the stress by recommending appropriate software and providing support for you in the set up and ongoing use of the system. We know you will wonder how you ever did without it!
Chat to your accountant today about finding the best software solution for your business needs.