Why Payroll Can Make Or Break Your Business

Payroll can make or break your business. It's one of the most important aspects of any business, yet it can also be one of the most challenging. There are so many things to keep track of; from employment law and regulatory changes, to privacy and confidentiality requirements. Not staying on top of payroll can lead to serious consequences for your business, including fines, lawsuits, and a loss in employee trust. In this post, we'll discuss why payroll is so important for small businesses, and offer some tips on how to stay up to date with all the latest changes.

What is Payroll?

Payroll simply put is the task of paying your employees the right amount and on time. It's that simple, yet it often comes with over complicated burdens to those not professionally trained in bookkeeping. Getting it wrong can mean fines and penalties, as well as staff morale and confidence concerns which only add to the nightmare.

Why is it important?

It's fair to say most entrepreneurs don't get into business wanting to spend time doing administration tasks such as payroll and bookkeeping. Most have a passion, or a skill, which they wish to share with the world. Once large enough to hire support within the business there becomes another layer of complexity, with each new person adding payroll, super, leave, performance management requirements into the mix.

Without help, most small business owners will use cheap fixes; spreadsheets which can be time consuming and prone to error, which increases the risk to the owner and their staff. Often there is no established, trustworthy mechanism used to educate and advise business owners about new changes to regulations or laws, meaning not only could these errors now cause legal action, there is a risk that changes which may be of advantage to the business are going without action.

What to do about it.

There is support out there. Employment Hero software is a product used to great effect in small businesses as it is set up to the needs of the business, for the employees to be able to run. In addition, there are support agencies such as Lucent Advisory, who are not only trained in the set-up, maintenance and operation of Employment Hero within the business, but offer support across a wider range of HR functions.

Employment Hero ensures that your staff are paid on time, the correct amount. The system is protected so that privacy is paramount, and it ensures that the minimum time needed for record-keeping is maintained. It will help ensure that full-time staff or part-time staff are handled accordingly and can make sure that all taxes are withheld in the amount that they should be, meaning the business using this system has confidence that they are doing right by everyone.

If you're frustrated by your existing set-up, if there is too much manual handling that causes errors and omissions, or if leave is going unapproved or not advised, speak to Lucent Advisory about how Employment Hero software can help you. All small businesses need a trusted partner, let Lucent Advisory be yours.