Smooth Payroll Management: A Guide

Smooth payroll management is the secret ingredient of a small business’s internal happiness and wellbeing. Any disruption to this can drastically affect employee morale, and may well put a dent in the trust and loyalty your staff has for you.

But how does a small business owner achieve this, on top of all of his/her other tasks required to keep the business afloat?

Top Tips for Smooth Payroll Management

These 5 invaluable tips will keep your business’s payroll management smooth and seamless every single month, thus keeping you up to speed with the law, as well as in good odour with your loyal, hardworking staff.

1. Frequent Reviews of Payroll Processes

Your company’s payroll processes should be like a well–oiled machine. This means regular reviews and revisions are required to ensure everything is running as it should.

What worked five years ago may not be the go–to solution now, so it can be worth periodically performing an “MOT” of your business structure, and fixing anything that needs fixing. This includes payroll processes.

Regular payroll reviewing can ensure that everything is running like clockwork and is in keeping with any changes to the law.

2. Keep Records

3. Compliance

We touched on this briefly earlier, but payroll laws can change, and when they do, you’ll need to make the necessary amendments to be in compliance with these changes. This can include shifts in employment laws, taxes, national insurance, data protection laws, pension laws, and the national living wage.

Failure to do this can result in unpleasant (and often costly) penalties from HMRC.

4. Get Knowledgeable

Even if you intend to hire an external team to manage the financial aspects of your organisation, being knowledgeable about how payroll processes work (and what doesn’t work) will be a valuable tool in your belt as a business owner. This can involve undergoing some training in this department, or ensuring your payroll/HR team are equipped with everything they need to know. Knowledge is power!

5. Outsource Payroll Services

Sometimes there just aren’t enough hours in the day –especially for small business owners; and outsourcing services can be a valuable endeavour –particularly for smooth payroll management.

In–house payroll processing can have its hiccups; particularly if a company is in the middle of a growth spurt, and outsourcing a service that caters to financial business processes, such as payroll, can be a worthwhile investment.

This will ensure your team is paid accurately and on time every month –and will save you the hassle of having to do this all yourself. They will also be fully knowledgeable on the law and any upcoming changes to business regulations that affect finances.

This can save time, and will keep the trust and morale of your team on a permanent high.

Need a Helping Hand?

• Manage your bookkeeping administration, including record-keeping –meaning you are always one step ahead of any HMRC (or other) deadlines.
• Prepare all annual accounts, and assist with any other accounting needs.
• Provide a cost–effective solution for your VAT compliance requirements.
• Offer new business financial expertise to help you achieve success.
• Assist with any other needs, via our additional services, including Xero training, and more.

Get in touch today for a free consultation.