5 payroll tips for small businesses

5 payroll tips for small businesses

Payroll, it’s a bit of a nightmare.

Not only is it complex, but the consequences of getting it wrong can be severe. HMRC and other authorities regularly audit firms that fail to meet statutory requirements.

Fortunately, we’re here to help. In this blog, we take a look at the top payroll tips for small businesses. Check them out below. Remember, if you get stuck, you can always ask accounting professionals like us, for assistance.

Understand your deadlines

Proper payroll management is all about understanding your deadlines. Knowing what you need to do, and by when, instantly makes your life significantly easier.

Before getting started, ensure that you have a system in place to meet all your deadlines. Set up alerts on your calendar or get your accounting software to remind you well in advance of any due date.

Pay attention to small details

Second, be a stickler for detail. Small businesses can find themselves the victim of automatic fines for making small payroll errors.

Ensure that you have up-to-date addresses, National Insurance numbers, and dates of birth for all of your employees.

Keep tabs on payroll legislation

The government is continually tinkering with payroll legislation as the political situation changes. Taxes, benefits and other rules are constantly being updated.

For this reason, regularly visit Gov.uk for the latest news and updates. The government maintains helpful, easy-to-read pages on any changes they make.

Create a financial backup plan

Keeping on top of your payroll payments is essential. If you don’t, then you could harm relations with suppliers and workers.

Make sure that you chase late payments as soon as they are overdue. Not doing this could lead to cash flow problems. Look for ways to get your customers to pay on time, asking for money upfront if necessary. Keep a surplus of cash on hand for times when revenues are low.

Train your staff in payroll

Lastly, you might want to consider training your staff in proper payroll and accounting. Doing this can be a great way to save time and reduce errors.

If you’re struggling with payroll, always work with professional accountants. They can ensure that you always pay and report accurately. Get in touch with us if you’re in need of anymore help.

No Comments

Sorry, the comment form is closed at this time.