Speaking of paying people, in today’s world it’s really important that you use really time-efficient and automated payroll software. When I first took on an employee, I used a bit of an old, outdated system. The system was a computer-based software which I had to back up. If I wanted to open it on another computer, I’d have to back it up, download it onto a USB stick, put that USB stick into the new computer and then take it with me. The downside to that is if I wanted to make any changes for my employees or any of my client’s employees, I’d have to be in the office to make those changes, which at 8:00 on a Friday night isn’t ideal.
Reasons why I chose cloud-based payroll system
So we moved, quite a while ago now, to cloud-based payroll. For example, QuickBooks Payroll solution is a fantastic cloud-based situation which means we could adapt and change our client’s payroll or our payroll at a click of a button. We didn’t need to worry about downloading, backing up, or anything like that. We just log in, we adjust the payroll, and we resend it. So really nice and simple.
The other key part nowadays is to make sure you’ve got live, up-to-date information. HMRC use what they call RTI, which is the real-time information. They expect employers to have their records up to date and accurate at all times and that includes things like tax codes and student loan payments. When you submit your information to HMRC each month, they will send you any updates and notices such as tax code changes. Traditionally, what you would have to do is log in to your HMRC portal, you’d find out what that notice was because you’ve had an email saying you’ve got a notice but you don’t know what to do as yet. Then you will go into your payroll software and make those changes. The beauty of cloud software these days is things like QuickBooks will talk to HMRC for you, bring in all the latest notices and code changes so you don’t have to do any of that. It’s all done in the background, so that’s saving you time and ensuring your records are really accurate.
The benefits of tracking time
The other key part is tracking time. Our firm doesn’t bill by time, we never have. But what we do is we track our time. We track our employee’s time to make sure they’re getting all the money they’re owed. So if they’re doing overtime, we want to be paying that out. But we also want to track how much time they’re spending on each client’s work to make sure we’re being profitable. One of the tools that we use regularly is TSheets. TSheets is a fantastic bit of software. It’s an app that all your employees can have on their phones where they can clock in and clock out, or you can just have a clocking in and out kiosk in your workplace if that’s more suitable.
And then what we do is we can go in and draw off reports and drill down on the information. It also feeds directly into QuickBooks because TSheets is an Intuit’s software now. So it feeds all your hours directly into your payroll software in QuickBooks, generating your payslips, making sure you know you’re paying out your staff how many hours they may have worked and nothing more and nothing less.
OnPoint Accounting Payroll System
Building up a stack, as the modern term goes, of software for payroll is just as important as building up a stack of software for your accounting process. If you ask your employees what’s the most important aspect of financing a business, they’re mostly likely going to say payroll. We want it to be accurate. We want in on time, and we want it right. At OnPoint Accounting, we currently use our own personalised payroll system. It ensures that the staff are getting their payslips on time, we’re paying them the accurate amounts, we’re paying HMRC the accurate amounts and we’re keeping up to date with all the code notices.
It is really important to put as much attention into the payroll stacker software as it is the accounting stacker software, especially when it impacts so many more people on a day-to-day basis. If you get someone’s pay wrong, that’s going to impact on their bills, that could impact on their family. So it’s really important that you relieve that pressure from yourself and that stress by using fantastic software that will help do as much of it as possible and just allow you to just click a few buttons and make the payment into the bank account, which is what we do each month.