Top 8 tricks to stop payroll driving you mad – how to manage your employees’ money as you expand
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 8 top tips to make payroll easier.
1. Know your big deadlines
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.
2. Invest in a payroll system
Payroll software such as Sage Instant Payroll or Sage One Payroll will automate the whole process for you, taking care of things like NI and tax calculations, generating payslips for employees, keeping up with legislation and providing information for end of year tax returns.
3. Get good system support
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.
4. 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. Sloppy mistakes will only lead to problems down the line.
5. Keep up with the rules
Changes in regulation 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. Try www.gov.uk, which has a comprehensive section on employment, or the Chartered Institute of Personnel and Development at www.cipd.co.uk.
6. Invest in training
If you use payroll software, taking a short training course could help you save time and be more efficient.
7. 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.
8. And if all else fails…
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.
Call us today to discuss your payroll needs.