Many small business owners find doing their payroll is one of the dullest and most tedious tasks. Yet it’s also one of the most critical. The reason? Delaying your business payroll can reduce your employee morale and could hamper even the most successful businesses by tying up company resources if something goes wrong.
So, what are some ways that you could efficiently manage your business payroll?
Note changes in cash-flow
The worst nightmare for a business owner is not having enough cash to pay their employees. So, put simply, you must keep track of your cash flow (expenditure and profit). Not only will this help you when managing payroll, but it will also help you recognise the root of your expenses – are you overpaying or are you understaffing?
Fix a pay schedule
Although you may have an idea that you’ll be paying your employees at the beginning of every month, middle of every month, or the end, and even a rough idea of how often they’ll be paid, it’s essential that you double-check this against the government regulations so that you meet the payday requirements, including both www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme furlough eligibility requirements and the amounts you can claim under current restrictions. What’s critical here is that you pay your employees on time and consistently.
It’s time to bring in a professional payroll services provider
Rather than you processing payroll yourself while juggling the other many tasks of being a business owner, ideally you would instead leave that with the professionals and use the freed-up time to invest into your company. Even if you cannot afford an in-house accounts department, you can choose to outsource your payroll to a payroll services provider. Not only will they ensure your employees are paid on time, but they are also up to date with the ever-changing HMRC rules too, which will give you time to market and grow your business.
Why not leave your small business payroll to us at CWR Accountants? We’re more than happy to help, so don’t delay and contact us today.