In the world of tight margins, inefficient payroll processes can throw a wrench into the gears of your business, causing delays, financial losses, compliance issues and data security risks. It’s something that’s all too common amongst small businesses according to Finesse Resources. In this article, the UK-based payroll specialists at Finesse highlight the most common red flags that indicate outdated practices and explain the effect they can have on a business. They also present a simple solution for businesses to improve their payroll process.
Payroll Red Flags
- Manual Data Entry
Is your team stuck in the age-old tradition of filling out physical forms, only to burden someone – maybe you – with the task of transferring that info to a computer? Not only is this manual data entry a time-drainer, but it’s a notorious breeding ground for errors. Relying on spreadsheets can be just as troublesome. It only takes one cell to cause an issue and it can be very easy for human error to go unnoticed without a payroll software automatically detecting inaccuracies. Plus, it’s not scalable, posing a challenge for growing businesses handling payroll for an expanding workforce.
Switching to a powerful payroll software will mean you can automate time consuming tasks and easily identify mistakes before they become a problem, all while enjoying the peace of mind that your employees’ data is secure.
- Lack of Payroll Training
Payroll is a specialism that requires ongoing training. With laws and regulations changing as quickly as technology moves on, today’s best practice can quickly become outdated. Payroll software is a prime example. Using the best software is like having a high-performance car, but without the right driver, you won’t get to unleash it’s potential. If your team isn’t getting regular training due to time or budget constraints, you might be missing out on features that could streamline your payroll process, making it faster and more accurate. Whether you manage some or all of your payroll in-house, it’s important that whoevever is managing day-to-day tasks is up to speed on payroll processes and regulation.
- Lack of Expertise
Small businesses often grapple with a shortage of payroll expertise. It’s not uncommon for an overworked finance team or a hands-on business owner, armed with limited knowledge of the ever-changing UK payroll landscape, to handle this crucial task. At best this takes up important time that could be spent elsewhere. At worst, it leads to mistakes, delays and compliance headaches.
For a small business, it’s often unrealistic to build a team of payroll specialists in-house. Thankfully, there’s a better solution that can be accessed by businesses of any size. The solution is outsourcing.
Why outsourcing payroll is good practice
Outsourcing payroll is a smart decision for small businesses that want to save time, money and hassle. There are a number of reputable and reliable UK businesses who specialise in managing some or all components of payroll for businesses who don’t have the resources to run payroll at maximum efficiency. Many of these specialists are CIPP-accredited, giving you the peace of mind that your payroll is in safe hands.
By outsourcing payroll to a professional service provider, small businesses can maintain as much or as little control as they like with a bespoke package. Ultimately saving them valuable time and helping to avoid the risk of errors, penalties fines and audits that can result from in-house payroll management. Additionally, outsourcing payroll can provide access to expert advice, support and technology that can improve the efficiency, accuracy and security of payroll operations.
Who are Finesse Resources?
This article was written by Finesse Resources. We’re a dedicated team of payroll specialists in the North West of England that specialise in ensuring your employees get paid promptly and accurately, every time. Ready to transform your payroll experience? Our CIPP-accredited team are on hand to help. Get in touch with us at https://www.finesseresources.co.uk/get-in-touch