02 Mar 3 simple payroll mistakes made by small businesses
Getting your payroll right isn’t as easy as it sounds. Many small businesses make regular payroll mistakes that can cause a massive headache. Here are a few of the mistakes we have encountered at SQK Accountancy, and how you can avoid them.
Failing to pay freelancers and contractors properly
One of the biggest mistakes made by small businesses is failing to pay contractors properly. Often SMBs will work with a range of freelancers and contractors while building up their business. Contractors and freelancers aren’t subject to the same rights as a full-time employee.
If you’re the only client a contractor or freelancer has, by law they may be considered an employee. Check that they are self-employed and ask for their tax number, otherwise, you could find yourself footing their tax bill at the end of the year.
Not understanding how your payroll software works
Not understanding how your payroll software works can have an adverse effect on how you run payroll. Too many businesses make simple mistakes when using programs like Sage or Xero, and this comes down to inadequate training.
Putting the time into learning your software will help you carry out payroll more efficiently, and it will help you avoid making any mistakes. Once you understand your software more clearly, you should find that it works with you rather than against you.
Hiring someone that isn’t trained for payroll duties
Small businesses often rely on friends, family or staff to carry out duties that they aren’t exactly trained for. One area of the business that SMB owners should never leave in the hands of an unqualified individual is finances.
An unqualified accounts manager could make simple errors that result in costly mistakes. That’s why you should always hire someone that has had the relevant accountancy training to handle all financial matters. That way you can avoid even the simplest of mistakes being made.
If you still think you need help with your payroll duties, contact SQK Accountancy today. We provide exceptional payroll duties for small businesses across Greater Manchester. Call us on 0208 798 0657 today or request a call back from a member of our team.