Is payroll driving you mad? Payroll is typically the number one concern for many small business owners worried about getting it right.
But it needn’t be difficult – here are our eight top tips to make payroll easier.
Know your big deadlines
“Dealing with accounting deadlines and employee returns is much less stressful when you know what you need to action well in advance,” advises Rachel Parkin, creative director at the Balagan Group and a Sage Business Expert.
Make sure you have a good system in place that alerts you to important dates and if you need to do anything. Working ahead gives you time to sort out any blips or problems.
Invest in payroll softwarePayroll software will automate the whole process for you, taking care of things tax calculations, generating payslips for employees, keeping up with legislation and providing information for end of year tax returns.
Get good support for your payroll software
If you use a software or online package, and a technical glitch is preventing staff from being paid, you’ll want help at hand to save stress and embarrassment.
Always check that online or telephone support is part of the deal and easily available.
Be a stickler for detail
Take time to set up your employee details correctly on your payroll system, such as start dates, up-to-date addresses, dates of birth and so on. Mistakes will only lead to problems down the line.
Keep up with payroll legislation
Changes in payroll regulations may affect how you need to run your payroll, so it pays to keep abreast of major new laws.
Benefits and tax change frequently and while you don’t necessarily need to know all the details, it’s worth staying informed and getting advice when you’re not sure.
Invest in payroll software training
If you use payroll software, taking a short training course could help you save time and be more efficient.
Have a financial back-up plan
Keeping on top of payments is crucial in any growing business.
Setting up a good credit control system, sending out invoices promptly and always chasing late payments firmly as soon as they become due will help avoid cash flow disruption.
If one of your customers doesn’t pay on time and you can’t pay your staff, your business could be in trouble. Always try to keep some surplus cash for a rainy day.
And if all else fails… payroll outsourcing
If managing payroll yourself is proving a real headache, consider outsourcing to a payroll company. They’re experts at what they do, and can save you the hassle of managing everything yourself and staying on top of regulations and paperwork.