While improving payroll management systems can be time-consuming it can make the process much more efficient. There are different ways for businesses to improve their payroll systems.
1. Investing in payroll software
By choosing an efficient program, businesses can partially or fully automate the process. Professional payroll software will allow companies to minimise errors and free up time that could be spent on more important tasks elsewhere. Using payroll software will also minimise risk as it will automatically detect and fraudulent activities. Other benefits include:
- Quicker working out of calculations and deductions
- More accurate generation of payslips
- Minimum effort needed to calculate bonuses, expenses, holiday pay, etc
- Easy returns sent to HMRC and you can print P45, P60 and any other forms for staff
- Automate your year end reporting
- Decrease the responsibility of compliance
- Reduce the need to understand difficult tax legislation
- You can store data in a secure and easily accessible system, for example, payslips and annual reports
After purchasing a new program some time will be spent on training staff on how to use it. Even though this may take away from certain other tasks, it can benefit the company’s processes in the end. Training will also help avoid errors and in worse cases even security breaches.
2. Maintain regular training and education
Regular training will keep HR and payroll professionals up to date with new developments. It will help them take advantage of useful tools that may have been introduced by the software company. In some cases, advisors that are connected to the software provider will visit an organisation in person and provide information on new products and services.
There are also many other benefits that come with investing in your employees through training and education. First of all, your employees will be more skilled, this means that the work output will be of a much better quality. It will also boost their morale as they will feel as though they are developing in their career. In addition to this, your staff turnover should decrease. Employees will build loyalty towards you as an employer and will want to work for you for a longer period of time, because they know that they will be supported in their development and learning.
3. Outsource your payroll process
Payroll processes don’t necessarily have to be done internally. Many brands rely on a professional, full-service payroll management company. This can be cost effective if you are a smaller business and don’t have the time to spend on accounting. Companies that manage payroll systems for other brands are experts within their fields and can not only speed up the process but help identify areas which may have been overlooked previously. This could even save money.
When looking for an external partner to carry out your payroll processes you don’t need to outsource everything. Some providers offer to work together with in-house teams.
4. Go paperless.
Not only is going paperless more eco-friendly, but it is also easier to manage at both ends. Dealing with stacks of paper is time-consuming and requires a lot of organising. Finding the right folder in which the required documents are stored, making sure that papers aren’t filed incorrectly and having the space to store all of the documents can make going paperless a much better option.
Determine, if payslips can be sent online instead of printing them out each month. This could also make things easier for employees who can then access the information they need online.
Other benefits of going paperless include:
- Easier transfer of information
- Better security: physical documents can be hard to track – piles of paper can get lost, misplaced in the wrong files or destroyed without anyone realising. It can also be extremely difficult to monitor the access, printing and copying of sensitive files.
- It saves money: going digital can reduce money spent on paper and printers, ink and postage, office space for files and employee time it takes to manage paperwork. The savings on employee time become especially valuable in regards to repetitive, high-number tasks, for example, expense reimbursements.
What makes improving payroll management so important? It allows brands to produce more accurate results, reduce errors and risks and automate processes. Whether you decide to use a professional payroll software or hire an external company depends on your goals and needs.