Payroll Accounting Software is Vital for Small Business
Payroll is perhaps the last thing you should spend hours though we agree it is the most important aspect of a business. There are others things like running, managing, and growing your business that you should pay more attention to. We are certainly not asking you to stop doing payroll because when you have people you ought to pay them as well as maintain all their data to be provided to the concerned authorities from time to time. We understand the need to streamline your day-to-day financial tasks, and there are various payroll software available for small businesses that is something you should consider to save your valuable time. That’s why we suggest you to invest smartly in a payroll accounting software so that your time is spent wisely where it should be. There are payroll software that include tax solutions, direct deposit options, and flexible payday choices the choice of the software will depend on the need of your business, however in this article we will help you to figure out what fits your business needs.Read Also: Payroll Complete Guide
It is very clear that all businesses with employees must pay their employees and manage payroll. Many small businesses process payroll manually or using basic software, but when the business starts growing beyond just a few employees, this becomes very time consuming and can no longer be done manually, thus comes the need of a payroll accounting software.
There are many solutions out there, some are feasible for everything from a small business to large corporations, and some are a perfect fit for businesses with less employees say 50. Choosing the right payroll accounting software for your company can be difficult. In this article, we share with you some insights into business payroll software packages for making the right choice.
First of all you need to decide whether you need a bare system or a fully featured HR management suite. When you are investing we would suggest you to buy a fully featured HR management software like Nomisma so that all the processes can be automatized.
Consider the following in a payroll accounting software
Payroll though sounds simple but it isn’t that simple. Apart from paying your employees regularlyyou have to do a lot more to it. Main operations of a business that an accounting software with payrollneed to address include:
Payments to staff
Dates and amounts must always be recorded in the software. There are software that take information direct from your attendance management system. You can link Nomisma with your biometric system to calculate the number of days and hours of your employees.
You need to make different types of payment to your employees apart from the basic salaries. These may include hourly rates, bonuses and commissions. An online accounting software like Nomisma will help you to get all this sorted.
Calculating tax and paying it the HMRC is the most vital part of the payroll. You have to be very sure keep the authorities informed about of taxes collected on behalf of your employees.
Under the Pensions Act 2008, every employer in the UK need to put certain staff into a pension scheme and contribute towards it, while others are given a chance to join if they wish. It is the responsibility of the employer to ensure that the correct action is taken in respect of each employee. This is called 'automatic enrolment'. The auto-enrolment feature of payroll will do all this tasks for you. Nomisma’s auto-enrolment feature will calculate pension contributions, handlesemployees that wish to opt-in or join the pension scheme, handles opt-outs and refunds, keep records and provides reports and with it you can directly opt to pay for the pension scheme.
Invest in an online accounting software with payroll that comes with pre-designed customisable layouts for payslips. Nomisma in addition to these templates provides for emailing the payslips to the employees.
Look for HMRC recognised software – Nomisma is fully HMRC complaint. With it you can directly submit PAYE and HI data to HMRC online. It will automatically calculate statutory sick, maternity, paternity and adoption pay and you can share all this data with HMRC. It will also record student loans and attachment of earnings orders.
Many a times it has been noticed that small business get caught in legal problems due to non-compliance with HMRC or due to incomplete details of employees. Thus you need to keep all your employees’ details for use by HMRC at any time. Look for payroll software that provides for detailed reports so that you get a glance of all information in a glance with key Government reporting dates for employees' pay and deductions.
There are accounting software like Nomisma that provide for Auto run feature wherein you can send payslips and reports to mentioned email ID in company set up with just a click and thereafter it provides for RTI submission automatically on pay date. So you don’t have to worry about remembering dates and doing the extra work. This unique and time saver feature of Nomisma can be used for standard payrolls.Read Also: Employment and Hiring Procedure
Plan in advance. Look for software that provides you the PAYE/NI figures for upcoming months for tax planning purpose. Nomisma comes with this unique feature that not just saves your time but also helps you in pre-planning things, which is the foremost feature a successful entrepreneur has.
According to industry experts organisations that use payroll accounting software reduce cycle times and manual errors.
There are significant advantages of online payroll software, these include:
Anytime, anywhere access
In case your computer crashes, all your data could be lost. However, with online cloud-based accounting software there is no need to worry for that. You need to just log in with any other machine and you will have access to all your data. That also means you can access your data any time anywhere especially when you are travelling.
With an online cloud based accounting software with payroll you can provide access to your bookkeeper or accountant into your payroll system so that they can work from where they are and also multiple users can work at same time.
Cloud-based payroll software use strong encryption to keep your data secure online, reducing the chance of data loss.
Online accounting software with payroll can do everything that conventional accounting software can do, but with the added advantages of the cloud and all in one solution. It provides you free space in computer, your desk and even your office as you need not worry about storing data, maintaining bulky files and taking back-up.