What is payroll?
Payroll involves calculating employee pay, deducting things like tax and retirement contributions, then distributing money to all the right people by the right dates. You also have to show all your workings to the government so they can make sure you’re doing everything correctly.
Why does it matter?
Payroll is critical to keeping employees happy, but it’s also important to keep the government happy. There are lots of regulations, and failure to comply can result in fines.
How to manage payroll
You start by calculating pay for each employee, according to the terms of their contract. And then you set about making deductions in the right order.
It’s up to you to channel the money to all the right recipients by the agreed dates. Make sure you understand when the money is due to each party, and transfer it on time. Learn more about how to manage pay runs.
Modern payroll management
Payroll software can automatically calculate pay and deductions, create payslips and generate reports for the CRA. If you pay by the hour, you can get employees to clock in and out of shifts on their phone and set up the app so the data flows into an online timesheet.
Because the tax status of individual employees can change for all sorts of reasons, payroll can become an admin headache. It’s common for businesses to outsource payroll.
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
How to do bookkeeping
Bookkeeping includes everything from basic data entry to tax prep. Let’s look at the core jobs and see how they’re done.
- How to do bookkeeping
Small businesses can do their own bookkeeping or outsource to professionals. We look at how to find a good balance.
- Setting up a chart of accounts
Stepping up to do the bookkeeping in a new business? You may have to set up the chart of accounts. Let’s look at how.
- How to do bookkeeping data entry
Data entry is the foundation of bookkeeping. Enter the numbers right and you’ll learn exactly how the business is doing.
- How to do bank reconciliation
Humans aren’t always perfect at punching numbers. Bank reconciliation is a way to do quality control on your books.
- How to manage accounts receivable
Many businesses issue invoices, and those invoices need to be tracked. Learn how to manage accounts receivable.
- How to manage accounts payable
Paying bills isn’t glamorous. But they’re debts and need to be dealt with. Let’s look at how to manage accounts payable.
- Creating monthly financial reports
There are dozens of financial reports that you could create. But there are some monthly mainstays that bookkeepers love.
- How to do payroll
If all you had to do was pay staff, it would be easy. But there’s more to it than that. Let’s look at how to do payroll.
- How to prepare tax returns
Tax returns can be hard for small business owners. There are deadlines to make, and rules to follow. Let’s take a look.
- Using bookkeeping software
Whether you do a lot of your own bookkeeping or outsource it all, software can help you save your time and budget.
- Using professional bookkeeping services
If you don’t have the time or confidence to take on bookkeeping, a professional can help. Let’s look at what they do.
Download the guide on how to do bookkeeping
Learn about the eight core bookkeeping jobs, from data entry to reporting and tax prep. Fill out the form to receive the guide as a PDF.