It was estimated earlier this year that £4.46 billion* would be collected through income tax and National Insurance (pre-Covid, of course!). Payroll is integral to the workings of your business and the country. This week has been nominated National Payroll Week, and we’re giving a big shout out to all payroll managers, especially our own, very special, Payroll Jane. *https://obr.uk/efo/economic-and-fiscal-outlook-march-2020
Payroll can save your business money
Were you aware that payroll can play a strategic role in saving your business money… and, help your employees save money? Yes, payroll. Many people are unaware that the payroll function is far greater than pushing a button to pay salaries or send information to HMRC: it also processes a whole host of very useful data and supports your staff.
Payroll, salaries and expenses
Salaries and expenses are likely to be the largest combined costs faced by your business. Expenses are often processed by payroll, and they show leaders very quickly where their budget is being spent and understand how much money they have to invest in other areas. This is particularly important for companies with multiple departments or where employees are scattered across the country or even the world, operating in different time zones and subject to different tax regimes.
This crucial information about where and when your expenditure is made, married with knowledge about why it is spent, will give you and your leaders the opportunity to discover at a strategic level how your business is developing – whether there are markets ripe for expansion or areas that are not profitable. On a day-to-day level, expenses will show you ways to either streamline expenditure or increase investment. For example, if your expenses data shows that a number of employees regularly spend money on travel to a particular city – this could indicate a growing market that is worthy of additional investment or it may flag that there is an opportunity to sign new supply contracts and reduce costs.
As well as the strategic benefits, payroll ensures that your employees are motivated and happy. When your payroll is managed by qualified professionals – either in-house or outsourced to experts – you can be assured that your most important assets are being paid correctly on time and you are complying with all relevant regulations.
Ensure you keep your employees happy
Payroll could also help by ensuring compliance and managing reporting – so by including these as objectives and measuring their success within this department, you can carefully manage another important aspect of your business.From happier employees who can enjoy a range of benefits – salary sacrifice and other schemes that boost morale – to unique insights into your business expenditure that can be used as part of your strategic decision making, payroll clearly has a very important role to play in your business and it may be worth taking another look at what is currently in place.
If you would like to learn more about how the payroll team at HB Accountants can give you real confidence in the future of your business and how you can potentially save money, then contact Jane by clicking here. We’re accountants for business and we are here to help you grow efficiently.
We understand how you can make sharper, better business decisions when you really understand your financial position and we are keen to help you deliver this transparency in the best manner for your business. For guidance on whether a cloud-based accounting system would help your business, please talk to us. We’re still working hard to help you make the right decisions.
Our Covid19 hub is still available to any business that needs accounting support and our team is on hand for bespoke consultations.
Visit our COVID19 Business Hub for more information
For financial and accounting guidance and support, please contact Keith or Karen. We work hard to help you make the right decisions.
Or call 01992 444466 or email directors@hbaccountants.co.uk for help. We look forward to hearing from you.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
