30 Jun 4 top payroll management tips for small businesses
Efficient payroll management is a major concern for small business owners. Here are a few top tips on making payroll easier.
1. Know important deadlines
If you want to retain control of your payroll, it’s important that you know when accounting deadlines and employee returns are due. Put in place a reliable system to alert you so that you can work ahead to sort out any potential issues.
Good cash flow management is also very important so that you always have your funds in the right place to settle all your outgoings, including payroll. Make sure you have a good credit control system in place, invoicing clients promptly and following up late payments as soon as their due date is passed. Having lots of money ‘in the pipeline’ is no use if you can’t pay your staff due to late payers. If possible, try to have sufficient funds in your account to cover staff wages, just in case there’s a problem with cash flow.
2. Payroll software
The easiest way to keep control of payroll is to invest in a reliable software package. This will effectively automate the whole process, including looking after tax calculations and NI contributions, providing end of year information for tax returns, and keeping up with legislative changes.
3. Keep up-to-date with payroll legislation
It’s important to be aware that changes in payroll legislation might affect how you can run your payroll, so always be sure to keep up-to-date with any major new laws. Benefits and tax rules also change frequently, so be sure to keep your finger on the pulse.
4. Outsource payroll
For many small businesses, managing payroll can be real headache, especially if you are not good with figures. As a small business manager, you can only spin so many plates without incident and payroll is one area that you could easily outsource to a specialist company.
A professional payroll company will be experts at what they do, and you could save yourself a whole lot of hassle by outsourcing the job. You may even find that your current accountancy firm offer a payroll management service, and it could be a good idea to take advantage of this.