Mistakes are commonly made in many areas of business, but payroll is an important process where mistakes should really be avoided. This is why many companies choose to outsource their payroll to an expert firm such as bookkeeper Tunbridge Wells where no mistakes will be made. If a business chooses to hire an employee to take care of the payroll process in-house, it is important that they are familiar with the rules, laws, regulations, software and basic process of payroll to avoid common mistakes such as:
- Setting up the process – Types and amounts of taxes can often change and can be complicated to implement. Payroll must follow the right amount of employer’s tax on pay cheques and salaries. A professional accountant or bookkeeper should complete the process regularly and using the correct system. They will often use a service or software specific for payroll to complete the process according to the HMRC regulations.
- Timing – Completing payroll late can result in the late payment of employees or penalties from HMRC. Rushing the process can also result in wrong figures, fines or paying your employees the wrong amount. Outsourcing the process is the best way to avoid missing deadlines, or using a payroll service will remind you of important dates and help to prevent mistakes.
- Bookkeeping – Payroll must be integrated in the books as it has an impact on the cash flow and accounting of a business. Ensuring figures are correct is vital for finances and accounting.