Payroll management is a very crucial component of every business! As necessary as it is for a perfectly working company, it can be a really complex issue to handle. Doesn’t matter if you are just a startup and have only a handful of employees to pay or a giant business group with hundreds of workers waiting for their checks. Managing this part of your business properly guarantees happy and loyal workers and better financial management of the company.
Essential tips for better payroll management!
Each business is different from the other in almost all ways. But some aspects of payroll management remain common for all of them. And these, if practiced efficiently, ensure a smoothly running company with happy workers and satisfied clients. We have listed below some vital tips to improve your present payroll management process for the betterment of your company.
1. Align your different types of payment schedule together — Different companies have distinct types of payment schedules. Some pay monthly, others weekly and few companies provide pays on an hourly basis. Even in a single company, you’ll find this uneven distribution of employee pay schedule. The first step towards a swift payroll management is to align the entire pay schedule uniformly. This means, keep a weekly or monthly cycle of payment for all the employees and pay them accordingly.
2. Streamline your payment process properly — Having payroll software that is too complex for your business structure or different softwares for inputting the amount, tracking and processing the pay can be a pain in neck. Instead, you should simplify, consolidate and streamline your system and records for better and improved payroll management.
3. Upgrade your payroll software — Your payroll software may be just the same as it was when you installed it. Now, your accounts have doubled and even managing everything needs better solutions. You’ll definitely face lots of issues in sorting out your payroll and taxes properly in this outdated software. Upgrade it as soon as you can to easily format everything and keep the procedure speedy and easy.
4. Maintain a regular training of payroll managers — The government’s law of payroll keeps changing from time to time. There are also some new calculations after each year. You will have to keep training your staff managing the payroll system regularly so that they don’t lag behind in organising everything which could otherwise lead to huge mistakes in payroll distribution and its records.
5. Outsource your payroll process — Managing everything stated above can be a really lengthy task and you should be very accurate in carrying it out on your own. But if you want to organise your payroll cycle properly without any hard work, you should simply opt for payroll outsourcing. In UK, DH Payroll ensures that your employees are paid timely for the work they do, and their balances, bonuses and taxes are calculated properly too.
6. Opt for a paperless payroll process – Want to manage your employees’ payments efficiently? Opt for paperless billings and records. This helps you in two ways; one, it saves you money, and two, you can access your records whenever you require. And since everything is secured through a password, there is no fear of losing the data by theft or otherwise. And what’s more? You are actually going green and benefitting the earth.
7. Run a regular audit and improve for the betterment – An efficient payroll cycle depends upon being consistent and perfect in your pay-checks and management of the same. For this, you will have to conduct regular surveys and audits about how to improve your payroll cycle better. You should also consider the complaints coming from your employees about the mismanagement of the payment cycle (if any) and try to improve it in the best way possible.
8. Seek as much transparency as possible – Problems regarding the payrolls arise when there is a misunderstanding between the employees and the managers/ management. Your employees may think you are deducting a lot of money for taxes or their bonuses aren’t calculated properly or maybe their past dues aren’t added to the pay-check. When you are transparent about everything and tend to list all these factors explicitly in their statements, then these misunderstandings don’t occur. Well, this obviously means efficient and smooth payroll management and happy employees.
Mistakes in managing the payroll can prove very hazardous to your business. And avoiding this at all costs should be your prime concern as an owner. And if you are following the above steps, you don’t leave any chance for such drastic mistakes.
