The complicated and time-consuming task of processing your company’s payroll can be one of the most difficult aspects of a business, especially one in its early stages of growth. Indeed, a rapidly expanding company usually means hiring more staff, distributing more benefits, paying more taxes as well as dealing with a variety of different payment methods. In addition, several other potential problems can also occur when dealing with a modern financial accounting system. However, considering the complexity of your company’s payroll system, there are a number of ways that you can make this task much easier while simplifying several of the components that are used your company’s payroll system.
Streamline your systems
Using a system of bank to bank transfers as well as direct deposits are some of the most significant ways that your business can save on both time and costs. Indeed, using direct bank transfers to deposit money in your employees’ accounts can simplify the system of payroll processing for accountants while salaries are automatically paid on time. In addition, the amount of personal data which relates to your employees means that manually entering new data into the system can be time consuming. Furthermore, eliminating paper from the payroll system is another significant way to save costs and time especially through a reduction in printing and distribution costs.
Automatic tax payments
Another way that you can simplify your payroll process is to use a system of electronic payments for your employees’ tax and National Insurance contributions which can also help to reduce or eliminate costs and time from the entire payroll operation. Instead of printing and mailing paperwork, your payroll system will automatically pay your employees’ tax and National Insurance contributions every month. In addition, if your employees are paid by the hour then a modern payroll system should process their time of entry automatically to save your company from manually entering this large amount of data into the system.
Furthermore, your payroll system could also be improved by making sure that the key steps in the payroll process are completed on the correct date. Indeed, the government requires that a company’s various financial statements are submitted by certain dates while your payroll software can also help your accountant to remember such dates so that your business does not incur an additional financial penalty. This is especially important when conforming to legislation regarding tax and the various other financial statements which must be submitted in a timely manner to conform to the appropriate legislation.
Another way you can simplify your company’s payroll system is to use a bulk update function to update any information which can affect the entire group of employees as well as individuals or specific departments. Indeed, bulk updates can save time as information can be applied to the entire workforce while this information does not have to be keyed in or updated on paper, saving money on labour.
If you want to simplify your company’s payroll processing system, then you should follow these simple tips which can help you to reduce your costs as well as the time taken to process your payroll.