10 Mar Three tips for managing your small business payroll
For most small business owners, doing payroll is one of the most time-consuming and tedious tasks that bring no strategic value to their business – but it’s also one of the most important ones too.
Problems in this aspect of business can reduce employee morale, tie up fundamental company resources and, in some cases, run the most thriving businesses into the ground.
Processing payroll is an error-prone activity, so what are three of the most impactful tips for you to successfully manage your small business payroll?
Decide on a pay schedule
While you might have a rough idea of when you’d like to pay your employees, and how often they get paid, it is important to check the British law to ensure that you are meeting the minimum payday requirements in your area – be it weekly, fortnightly, or monthly payments. Whichever option you pick, you must pay consistently and on time.
Keep track of the cash-flow
One of the greatest fears many business owners experience is not having enough money to pay their employees. Monitoring and evaluating your cashflow could help you identify the root of this issue. It will also allow you to spot potential payroll issues such as overstaffing or overpaying. You can do this by looking at your current financial situation, as well as keeping an eye on patterns such as how much time your clients take to pay.
Enlist the help of a professional payroll services provider
Instead of spending hours processing payroll and trying to keep up with the ever-changing payroll rules in place by HMRC, you’d rather spend time with your clients. As many new and small businesses cannot afford an in-house accounts department, it would be sensible to outsource your payroll to a professional services provider. This will ensure that both HMRC and your employees are paid without delay, saving you lots of time to develop your small-business clientele and brand.
If you want to outsource your small business payroll, we’d be happy to help. Based in Manchester, our fully qualified team of accountants are ready and waiting to support you. Call us on 0161706 0444 for more details.