For many businesses, especially smaller ones, managing a payroll seems simple enough. At least, it does so at first glance; what’s so hard about making sure two or three employees get their fair share at the end of the month, right? It turns out that, of about 1.2 million small enterprises in the UK, a significant percentage still has trouble making sure that everything is done correctly – and if they do manage to do it according to all the rules and regulations, they spend far too much time on the task. No, payroll management is not as simple as it seems. Luckily, for those who have trouble, there are some straightforward solutions. Here are some simple and easy ways for managing your payroll as a small business.
Why it’s so hard
First of all, managing a payroll requires a lot of time; it has to be done with care. Secondly, it requires accurate record keeping, and for the scatterbrains among us, being meticulous and orderly doesn’t come easy. Third – and more importantly – it requires us to be constantly up-to-date with the laws and latest amendments the government sees fit to implement.
Managing it in-house
When you decide to manage your payroll in-house, you should make sure the person responsible for this is good with numbers, has the patience to sit through the whole process, and is organised to a fault. He or she needs be familiar with the PAYE tax system, as well as with HMRC deadlines and regulations.
There are many software programmes on the market that help with payroll systems and allow the work to go more quickly and efficiently. It may be worth investing in.
In case you have trouble, know that professional help is always available – there are many ways to outsource payroll management through professional payroll services.
One additional reason – an important one – why many people have trouble managing a payroll system (and choose to outsource) is because laws are constantly changing, and it requires time and knowledge to keep up to date with the latest rules and regulations. This results in either loss of time, inefficient system management, or mistakes that could easily be avoided. Payroll management is an important task and should be done with care. How small businesses manage their payroll systems is, of course, their own choice – but it’s a shame very few managers or owners of small enterprises are aware of the various options that are available out there. Take a look around and consider the choices; you may find more efficient ways to deal with the important task of keeping your business, your staff, and the government happy.