How much easier would your payroll run be if there was a way that your accounting software automatically worked out the super you needed to pay?
Even better if it went one step further and actually made the payments for you!
Well, would you be surprised to know that this functionality already exists? Through the Xero accounting software, you can process your super payments much more easily and with a couple of clicks of your mouse. Interested in how? If you want to know how to do this then read on!
If you already have an online accounting software like Xero, you already can reconcile payments quickly and easily. You understand how important the correct and swift reconciliation for your bank statements is. In the same way, accurately reconciling super payments is also crucial for your SME.
We all understand that super contributions in the form of a Superannuation Guarantee are required from employers. That doesn’t mean it is an easy responsibility as a business owner to comply with! These payments must be made regularly and not having a functioning piece of software to do it for you is no reason not to do it!
There are ways to fulfill your legal obligations with just a few clicks from your computer. Using the Xero accounting software, you can allocate super payments for your employees very quickly and very easily. Of course, once made, Xero also allows you to reconcile these payments really easily too.
Auto Super via Xero
You may not realise it but if you have a Premium 5 or above subscription with Xero, you have already access to Auto Super. This functionality allows you to process one payment for multiple superannuation funds. Amazingly (and very helpfully) Xero will do the rest by splitting the payment and sending it to the correct superannuation funds. Xero uses a third-party provider to provide this service. They are called ClickSuper. You can visit their FAQ page on their website to answer any questions you might have regarding the integration. Using Auto Superannuation can save you a lot of time when paying your employees’ super funds. It will also ensure accuracy. We suggest getting the initial setup done by a professional who knows their way around Xero. This will make a huge difference and they can give you a quick tutorial if you then want to take over the payments yourself!
You can find out more about how to register for this facility on Xero here.
Processing Super Payments using Auto Super
The actual process of making payments for your employees’ super is very straightforward. It involves the submission of a payment batch for processing. Before the processing can happen, the payment batch must be approved by the person who is authorised to approve such payments. Once the payment has been processed, the authorised individual will receive an SMS. This will confirm that the payment has been successful.
The Reconciliation Process
For the majority SMEs who already have bookkeeping software, having the ability to reconcile the successful payment with your current bank statements would be an everyday procedure.
Unfortunately, aside from this being a tedious process, the added burden is that the deduction on your bank statements is not always available in real-time. Now, though, with the development of modern cloud technologies such as Xero, you can reconcile super payments quickly. Here’s a simple guide to reconciling your super payments through this cloud accounting tool:
- Navigate to the Dashboard section.
- Determine which bank account you used to secure the super payments. Click Reconcile items.
- Choose the specific statement line for the super payments you have settled.
- Enter the required information prompted by the program. This can be found on the right side of your screen. Your super payments will generally be allocated against the Super Payable account.
- Click OK to reconcile.
The value of reconciling super payments in one go will have a huge impact on many SMEs. It will ensure:
- any potential errors are caught
- ensures your company’s super compliance
- provides a record of successful super payments.
This then means that it would significantly help resolve potential conflicts or disputes regarding your adherence to government-mandated super contributions.
If you would like to chat to us about this or any other aspect of your bookkeeping, please feel free to reach out. Liz Peacock and the team at Keeping Numbers offer a full bookkeeping service as well as set up and training. As one of Brisbane’s most well-established Bookkeeping Consultancies, they deal with SME’s across Australia. Click here to see other BLOGS in this series or here to Email Liz Peacock.