Choosing a financial and payroll year end for your business
When starting your own business, you are likely to make a large number of decisions, both big and small. One such decision is when to schedule your financial and payroll year end. While this may seem to be a small decision, it can significantly affect your business’s finances each year.
Business owners may choose any date throughout the year, but there are a number of factors that should be considered before making this important decision. Choosing the right year end for your financial year can positively affect your business’s finances because it determines when you pay tax on your profits.
QuickBooks payroll software can help you organise your salary payments throughout the year, which will in turn streamline your payroll year end processes. Browse our payroll software packages, including Quick Payroll and Quick Payroll Lite, to find the one that best meets your business requirements.
Continue reading to discover what factors you should consider when choosing when to schedule your financial and payroll year end.
What happens at payroll year end?
At the end of the financial year, employers are required to submit a tax certificate to the South African Revenue Service (SARS) for each of their employees. This is to ensure that employers have made the correct tax payments throughout the year. All payments are reconciled at the end of the financial year to ensure that the total paid by the employer matches the total owed.
What are the penalties for late submission?
In order to encourage employers to submit their tax forms before the deadline, SARS charges a late fee on the total amount of employees’ tax due. This amount of interest charged may change from time to time, and so it is important to keep up to date with the latest legislation, and more importantly, to submit your payroll tax forms in good time.
Will you have the time to complete your year end payroll responsibilities?
Collating your year end payroll tax forms is complex, and can be a lengthy process. Because of this, it is wise to choose a financial and payroll year end that occurs in a period during which your business is not particularly busy.
Pre-submission preparation
In order to ensure that the end-of-year payroll process runs as smoothly as possible, experts recommend that payroll is reconciled regularly and in sufficient time before your financial year end. Many businesses reconcile their payroll on a monthly basis as this allows for any discrepancies to be dealt with almost immediately. If followed efficiently, pre-submission preparation can greatly reduce complications at year end.
QuickBooks – an accounting solution for your payroll year end
QuickBooks payroll software is ideal for calculating both monthly salaries and payroll year end totals. Furthermore, we offer free updates that keep our payroll software in line with current legislature.
Implement a successful payroll year end process today that incorporates QuickBooks software. Browse our software now for more information on the features and benefits of QuickBooks payroll solutions.
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Quick Payroll is designed to meet the fast growing needs of dynamic South African SMEs.
It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
Quick Payroll Lite is designed to meet the fast growing needs of dynamic South African SMEs. It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll Lite interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll Lite is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
Quick Payroll Startup is designed to meet the fast growing needs of dynamic South African SMEs. It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll Startup interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll Startup is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
