09 Sep Top payroll tips for start ups and small businesses
Operating a payroll is challenging for business startups and existing small businesses, and one important early task to ensure the tools are in place to make running payrolls a routine matter.
Some top payroll tips from the expert payroll team here at SQK Accountancy include:
1. Ensure all hourly paid team members are automatically scheduled into the payroll
If you employ any hourly-paid workers, it’s vital there is a seamless integration between the clock card or accounting hourly management system and payroll. In worst-case scenarios, mistakes with pay, or missed payments for hourly paid staff could result in the loss of workers your business needs. Setting up a reliable method for transferring working hours is, therefore, a priority and enables a greater level of trust from workers that know they can rely on your company to make regular, accurate wage payments.
2. Choosing salaries or hourly wage payments
Although paying workers a fixed salary may seem easier to manage, you could also consider the benefits of hourly paid workers on your payroll. Or even think about making all team members hourly paid. When you pay by the hour, you’re only having to pay salaries for hours worked, which can make it far easier to manage seasonal peaks and troughs. This is particularly the case when you have a workforce willing to put in extra hours at busy times. If you do choose to set up an hourly paid system, clock cards or timesheets can be easy to integrate into your payroll software at the time of purchase.
3. Schedule business payrolls at the best times of the month or year
Startups can be quite flexible when making decisions about payments for employees, and these are often dependent on business size. If you don’t employ many workers, you can opt for a weekly or fortnightly payroll run, and this can be extremely beneficial in terms of business cash flow.
4. Consider the benefits of cloud-based payroll providers
Payrolls can be much easier for companies and startups opting for cloud-based providers, and these systems are simple to scale up or down at short notice. With these systems in place, it’s possible to access data or enter payroll details from any internet-enabled device, including mobile phones. Furthermore, cloud payroll providers offer legislation-compliant services which reduce the requirement for business clients to upgrade their own systems, for example, to meet Making Tax Digital requirements.
We specialise in cloud accounting and payroll services for smaller businesses and startups. Get in touch to find out more, we’d love to hear from you.