3 Benefits of Single Touch Payroll for Accountants

Posted on: 24 November 2020

It is that time of the year when you are expected to file your business tax returns. While reporting business tax was a difficult problem in the past, it is not the case today since the process relies on a myriad of electronic applications. One such app is the single touch payroll (STP), which automates payment summaries such as salaries, wages, and superannuation contributions. This article highlights the benefits of using STP for business accountants.

Fewer Errors -- The last thing you want to do when preparing tax reports is to make mistakes. The Australian Tax Office is stringent on errors of omission or commission and applies stiff penalties to culprits. You are likely to make mistakes if you fill in accounting data in your reports manually. Typographical errors and miscalculations are some of the most common mistakes that businesses relying on manual accounting and bookkeeping techniques often make. Thanks to single touch payroll, you do not have to worry about making tax reports errors. All information that relates to a business' payroll and tax return is accurate, saving you from fines and penalties.

Real-Time Updates -- If you rely on old tax reporting systems, you need to prepare accounting summaries first then send them to the ATO, who calculate your business's tax obligations. Unfortunately, you need to submit the information in good time to avoid penalties and fines. The single touch payroll system eliminates the need to gather all the accounting summaries and send them to the ATO. An STP transfers all this information to the ATO in real-time. The feature allows the ATO to update your data automatically, ensuring that your accountant can view all tax reports in real-time. It reduces the chances of filing your tax reports late, avoiding hefty penalties.

Saves Time -- Although small businesses do not have to deal with a lot of data, accountants still agree that manual data entry can be a bit boring and time-consuming. It is not the right combination if you are racing against time to prepare tax reports. Since a single touch payroll automates the whole process, accountants can accomplish a ton of extra work within the shortest time possible. For instance, STP automatically updates information, which turns tedious data entry tasks into a simple copy and paste. It allows accountants to redirect their attention to more critical accounting tasks.

Reach out to a business accountant for assistance with your taxes.