3 ways to manage your payroll as a growing business

Here are a few ways to make the most of your business growth by managing your payroll.

In July, it was reported that business confidence in the UK had plunged to its lowest level in six years.

This has made many firms loathe to invest significantly in their infrastructure, which in turn has proven to be a false economy and one that has prevented numerous small businesses from experiencing growth.

Rather than not spending, however, businesses should focus on optimising their ROI and driving sustainable levels of growth. So, when you invest in a new payroll management system, for example, you should also take steps to ensure that you implement and use this to its full potential. Here are some steps to help you achieve this:

Know your deadlines

Even the most advanced systems will require management, as technology can only ever be as effective as the individuals that use it. Not recognising this is a common mistake that businesses make when integrating technology, as they fail to achieve their goals and ultimately waste money.

In this instance, your new software must be managed by a dedicated team that has an innate understanding of their roles and the underlying drivers of the business as a whole. Most importantly, it must appreciate the business’s main accounting deadlines, including those relating to supplier payments and monthly wage deposits as priority.

If you are aware of these and can work well in advance of their deadlines, you can optimise your software’s efficiencies and boost your ROI. You can also keep your employees and partners happy, by paying them in full and on time every single time!

Monitor payroll legislation

On a similar note, those who are responsible for managing payroll must also strive to keep in touch with changeable legislation. Remember, the financial service sector and its regulatory bodies evolve at a rapid pace, with the  compliance laws for small businesses constantly changing over time.

Employee benefits and tax requirements are the most important considerations, so you must stay informed on these elements and ensure that your business (and payroll software) complies in every possible way.

To find out more and plan your strategy, visit gov.uk and review the site’s guide to employment at your earliest convenience. This will provide a core base of knowledge, from which you can tailor your approach and begin to deploy your system more effectively.

Invest in payroll software training

You can probably see a theme developing here, as regardless of how much you spend on the latest technology it is crucial that your employees remain accountable for the handling of data and the correct use of individual systems.

So once you have invested in payroll software, you should also consider paying for full training so that those who will use it have the opportunity to realise its full potential. This also guarantees that the system is used compliantly, so that it can drive greater efficiency and individual employee productivity.

This may represent a simultaneous and potentially costly investment, but it is necessary if you would like to boost your ROI. Without this, you could find that your initial investment is wasted and fails to deliver a return.

Related: Five tips on how to properly use payroll software

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