Payroll Perfection - A Guide to Improving Your Payroll Systems
The topic of payroll can get more than its fair share of eye rolls, and yet it is such a fundamental need of every business. The issue is not with the procedures itself, but more the time it takes to complete and changing compliance obligations that put pressure on the team. If you’ve recognised that your payroll systems are in need of a discussion and a reboot, here are some ways you can improve your payroll.
Consider outsourcing
Thousands of small to large companies have benefited from the ease and professionalism of payroll outsourcing in Melbourne. Taking it out of the house and into the hands of dedicated payroll provider will give back crucial time to your business, and will allow your finance team to work on bigger picture tasks and projects. You simply need to provide the outsourced payroll team with a report detailing the number of employees, salaries and benefits - and step back and watch payments be completed seamlessly and on time. An outsourced provider can even handle deposits, tax filing, reporting and other responsibilities.
Where possible, remove paper
Manual processes that utilise paper are fraught with danger. Errors in checking or data entry can create serious payroll issues that can impact the bottom line. Instead of tracking and organising paper timesheets or remuneration slips, make it digital. Digital payroll systems can greatly improve not only the final output but the resources required to manage your payroll process. Going paperless will also allow your business to accurately track and forecast expenditure for any given period. This means making smarter business decisions in real time, instead of after the fact.
The preferable alternative is to take it one step further and outsource as we discussed above. Then the requirement to track manual systems is removed completely. Outsourced companies are a great way to utilise outside systems and infrastructure to benefit your business.
Keep a close eye
Payroll is a critical part of any business, especially when you consider the liability associated with errors. Having unpaid staff and unbalanced books? A nightmare you can’t afford. Making sure you keep a close eye on your payroll processes is even more important. To help improve your payroll system, consider using an auditing service to identify any issues or areas for improvement. Now auditing has a bit of a stigma, but it’s the only way to spot and eliminate any issues affecting your business metrics. Auditors are a great way to get an unbiased and impartial view of your payroll function. Identifying areas for improvement can help streamline or avoid more significant issues down the line. External auditors are a worthwhile option to help drive an overall improvement in not only day to day processes, but also a good sense check of your end of year reporting requirements.
The importance of a well-performing payroll system is no secret. It’s just hard work and the right software. Errors in this part of the business can not only impact the culture, but also the bottom line. Both of which you don’t want to mess with. When it comes to improving your payroll system there are a number of options. Outsourcing is a great way to remove the burden and paperwork of managing payroll while giving you that much-needed peace of mind. Additionally, auditing your system is a critical step toward improvement in both the short and long term. If you aren’t sure if your payroll system is up to scratch, consider using this simple guide to achieve payroll perfection.