When running a smaller business it’s important that all the aspects of administration and management are carried out in the most efficient manner possible: you can’t, after all, afford to waste any resources. The payroll system is one of the most important tasks to administer, as it will help keep the cash flow figures accurate and your employees happy. That’s why we’ve put together this piece on the different ways in which you can manage your own payroll.
Use the right payroll software
This is one of the most cost-effective ways of managing your payroll if you don’t want to outsource the work. There are a wide variety of different payroll management software packages available on the web, and a good deal of them offer excellent value for money. If you’re uncertain around things such as tax deduction and expenses allowances then good software will help, making the calculations for you and simply relying on you to input the right data. The software will also usually update itself to ensure it is kept up-to-date with the changing tax regulations in your country. The more advanced software will also help you to make more accurate budget forecasts.
Hire an accountant
A very traditional tactic, but it is one that certainly has its benefits. It’s often said that a very good accountant will usually know enough about the tax system to save you at least their own fee, therefore becoming essentially a free service. As well as giving you the ability to essentially offload the whole financial process (saving you a lot of time on filling in tax returns, which are not exactly riveting entertainment), a good accountant will also be able to offer advice on the financial future of a business and on issues such as PAYE, and if and when the company should become a limited one.
Using a contractor
A contractor is similar to an accountant, but they are experts in process management rather than individual finances. This is the ideal option if your company is of a substantial size, as a good contractor will have no problems in managing what will (by this point) be a seriously large amount of data. Using a contractor will ultimately come down to whether or not you want to create your own in-house payroll department or not. Some firms will prefer not to have the extra worry and administration to deal with, and taking advantage of a contractor’s services is the ideal way to overcome this issue.
Doing it yourself
This option will largely come down to two things: how confident you are in dealing with numbers, and how big your company is. If you’re running a very small enterprise, then it’s likely that you’ll be able to deal with the accounts yourself up to a certain level, as it’s simply a matter of running a moderately sized spreadsheet. If you are busy on the actual daily running of a successful business there will be a point when you have too many employees to be able to handle all the data, and do all the administrative work involved. Using a contractor would then be a good option.