Improving Your Payroll in the New Tax Year

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Payroll in the New Tax Year

A business’ payroll is one of the most important areas to manage. Mismanagement and mistakes harm the ongoing efficiency of the business, affecting the finances of both the company and the employees. Missed or twice-made payments, incorrect taxation, loss of P60; these are problems that not only affect a budget but can also trigger issues elsewhere in the business.

In this new tax year, to help you assess your operation and consider whether your business is running at its best potential, we’ve put together advice on optimum payroll practices, as well as how to improve your payroll too.

Consider Simplicity

The emphasis on simplicity benefits many tasks, and payroll is certainly one of them. Despite complications, such as incorrect or missed payments, companies continue to operate with convoluted payroll systems. Employees, for example, might be paid at various times, dictated by different contracts or schedules, which often and inevitably leads to disorganisation. Dealing with invoices from external contractors, especially those employed sporadically, may also cause confusion. Among this, some businesses even use multiple payroll systems and software.

If you are experiencing payment issues or find yourself spending too much time on financial management, consider simplifying your methodology. No matter how confident your company is in its payroll, there’s always room for a degree of consolidation, whether in responsibilities or software.

Digital Transition

Paper doesn’t cut it anymore, especially when dealing with significant and regularly handled documents. Paper documents also require dedicated physical storage and can be cumbersome to organise, especially compared to digital alternatives. Searching for and managing certain documents in paper form is more prone to error, which is why the digital transition has been a huge support for small and large businesses.

Digital document management is quicker and easier to access, and it can be reached remotely by multiple, key employees. Payslips can be accessed without hesitation and important documents are not easily lost. It’s also far more environmentally friendly.

Outsource Your Payroll

One way to ensure total reliability in your payroll management is to outsource to a reputable company. Payroll services are more commonly adopted in recent years, rising in popularity due to their reputation.

As tax law continues to change and employment becomes more diverse, keeping up-to-date with payroll management, ensuring that your business is only spending the right money while adhering to regulations, is easily done by handing it over to the experts.

Review, Review, Review

Well-designed payroll systems cannot always last. As businesses grow and laws change, system designs that were once ahead of the curve soon begin falling behind. Annual reviews and audits are constructive. However, they aren’t always enough. Furthermore, if the checking of crucial documents isn’t already routine, mistakes made can end up going unnoticed, causing more significant harm.

Conducting in-house and regular audits, including basic document reviews, is crucial for a business’ sustained health, helping you to catch issues early while adapting to change easily. Database management habits should also be considered, as well as smaller areas such as employee calendars. 

 

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