Businesses enjoy sticking to what they know. If you’re comfortable with something, sticking by it often seems like the best way forward, even when it has glaring issues. This is often the case with company payroll.
Many businesses still have company executives managing employee payments and wages. While they might have the assistance of a calculator, there is still ample opportunity for human error.
Making mistakes with payroll in-house can be detrimental. It may affect many areas across people’s lives. Incorrect payroll can result in housing payments, utilities, medical bills, and family costs.
This is why many businesses have already changed to an automatic payroll system.
Having your employee’s wages paid automatically can help take a huge workload off your company’s shoulders. Accounting software such as Xero can help small UK businesses pay employees. It also takes individual taxes, set wages, overtime, and deductions into account. By allowing for the complete organisation of payroll, you minimise the margin for error that comes with humans.
How does the automated payroll process work?
The system allows you to save employee profiles. Keeping track of their wage information, while allowing for changes depending on the circumstances.
Any pay recipients will receive their payslip a week in advance at least, detailing a breakdown of that month’s wage. The software will display any bonuses, overtime, or deductions for that month, along with the amount of tax paid. This allows employees to check their payslip, giving them the opportunity to fix any mistakes made before payday.
The system requires every employee to have an account for the software. Xero allows both management and employees to access key information about their wages. Account holders, aka employees, can view their payroll digitally.
Are there any other benefits?
Payroll and HR software can be useful for invoicing any customers. Use Xero’s built-in calculator tools to accurately invoice clients.
You need to account for every cost. Missing charges on invoices can be a pain to fix. Making sure they’re correct when sent will help avoid any unnecessary troubles.
Employees can access their accounts through the software, allowing them to change their information themselves. This avoids the need for administrators to change it themselves, which can create unnecessary complications. This saves time, meaning you can instead focus on other tasks.
The tool’s accuracy isn’t just helpful for the maths of managing payroll, but for keeping within legal compliance. This is legislation set out by HMRC to protect employees and businesses.
Having access to a full breakdown, with key details on their pay, tax, additions, and deductions can be helpful. Having this information on the fly, allows employees to better manage their finances in external situations. This can include banking, mortgages, and tax from additional income sources.
To maintain compliance, businesses need to make sure their payroll is accurate. Pay salaries on time, and ensure PAYE deductions are error-free. Non-compliance can create hefty fines for your business. Using a payroll automation system allows for consistency and accuracy.
Enter the data correctly, and there shouldn’t be any issues with the payroll itself. This helps create a secure system for workplace payment. The more accurate the integrated system, the more trustworthy it is to users.
Payroll automation software is also more difficult to exploit, in comparison to a human individual. Having protected software helps protect crucial employee information from cyber-threats a person could fall victim to.
What can we do?
You should take steps to minimise any risk. This is essential, especially for smaller businesses.
The initial set-up and integration of the software can come across as a large task. But in the end, it creates a more streamlined system in preparation for the future. You can make changes when you require them. This will make it easier to fix issues and mistakes behind the scenes.
We understand this system through and through. By integrating it into your company, you can transform how you manage finances, and your employees.
We use automated HR and payroll systems to ensure our client’s payroll is accurate and on-time. We can do the same for you.
