Tag: #payroll

How To Reduce The Running Costs Of Your Business

Making savings to reduce the running costs of your business could be ‘make or break’. Figures suggest that the number of companies going bust this year could be the highest since the financial crisis of 2009. Statistics also show that insolvencies rose 10% from a year ago in the three months to the end of September and there has also been a sharp increase in the number of firms at risk of going bust. Before your company falls into this category, it’s worth considering how you can save monies. In this latest article from team4 bookkeepers, based in Sussex with worldwide clients, we look at eight things you can do that could dramatically reduce your overheads.

 

  1. Explore alternative business premises

 

Could there be an alternative to the long-term commitment of renting office space? If you are not fully utilising all the space you have at your disposal, you might consider downsizing. You may not need that large office anymore as you are now outsourcing your marketing and bookkeeping, so maybe a space half that size would suffice. Perhaps a co-working arrangement might work for you or could employees work from home? In the latter scenario, you could save rental fees and the associated costs of a physical building, saving you a packet.

 

  1. Check regular outgoing payments

 

Do you know what you are paying for every month? And if so, do you need everything that is going out of your business? To reduce the running costs of your business, it’s time to pull the plug on unused services. These could include subscriptions or networking fees or software apps that are never used. You can check with your team to see if services are still necessary. With software, consider downgrading to a free version. It really is easy to lose track of payments particularly if made by recurring payments such as on your credit card or direct debits. Here at team4, we think you will be surprised about what you are paying for that you don’t need.

 

  1. Are you getting the best energy tariff?

 

If you are not tied into a contract, find out if you can get a better deal. It’s worth checking a few companies to see the best contract terms available. On top of this, you may be able to make savings on the energy you use to reduce the running costs of your business. Turning the thermostat down by a degree or two can save a lot and your office does not need to be heated when you are not using it.

 

  1. Could you get a better deal on your mobile telephone and Internet?

 

When your mobile and Internet services are due for renewal, check out other deals, as there are some really good ones out there. Some suppliers have deals on the number of phones that you use. We recommend that you don’t automatically renew services including mobile phones, business insurance and broadband contracts. Renegotiate every year to make sure you are getting the best price.

 

  1. Shop around for the best price on supplies

 

You could be making savings on software and general office stationery. Buying in bulk can be a good option if you know you will use/sell the stock. You may find that there are some good deals around traditional sale times including Black Friday later this month (24 November) and Cyber Monday (27 November). Also be on the look out after Boxing Day and New Year.

 

  1. Go paperless to save oodles on printing costs

 

To reduce the running costs of your business, consider moving completely away from any paper documentation and go completely digital. Going paperless can really save you money and so encourage your team to only print out documents only when essential.

  1. Draw up a budget and stick with it

 

This will help to identify areas where you can make savings. Your budget can be based on your average income per month and our tip is underestimate income and overestimate spending. This is applicable irrespective of the size of your business, from start-ups to growing businesses.

 

  1. Get the best professional advice

 

Make sure you are getting the best advice from your bookkeeper and/or accountant. Tax relief is available for small to medium sized businesses. And don’t miss out on tax-deductible expenses across a wide range of categories including office supplies, uniforms and vehicle fuel.

How can team4 help you to reduce the running costs of your business?

 

In these tough times, we hope you have found our latest article about how to reduce the running costs of your business helpful so that you can lower some of the expenses and overheads associated with running your business. Here at team4 our aim is to support you by optimising your expenses, keeping close tabs on your spending and helping you set budgets. If you are looking to work with a bookkeeping team with a proactive approach and your interests at heart, please get in touch. We can help you with ways to improve your cash flow and ways to get your clients to pay on time. Call us on +44 1825 763378 or +44 1903 442511 or email info@team4bookkeeping.co.uk

How To Avoid Payroll Mistakes

Payroll management is a vital and fundamental element of running a business and it is paramount that you avoid making payroll mistakes. It is important that payroll processing is carried out accurately and is compliant. You will want your employees to be paid correctly and on time and you will also want to avoid any fines or legal issues. There are lots of hurdles to jump over including complex legislation, auto-enrolment, rolling deadlines and RTI submissions. With large fines for mistakes, it’s worth getting the process right. Here at team4, bookkeepers with worldwide clients, we often witness payroll errors when we are called in to put things right. Here is our list of the most frequent payroll mistakes and our tips on avoiding them.

Misclassifying workers

This involves misclassifying the status of somebody doing work for you. It is one of the most common payroll mistakes. It often involves not distinguishing between an employee and a self-employed contractor. There are many distinctions you will have to make including new starters, those with a second income and employees with company benefits such as a vehicle or private medical insurance. Contractors and freelancers are not eligible for the same rights as employees such as holiday allowances and pensions. Your workers’ status should be based on HMRC guidelines and employment law. Here at team4, we advise efficient record keeping and keeping up-to-date with the latest legislation.

 

Application of incorrect tax codes

If employees are given the wrong classification, this can lead to over or under taxing them. Tax codes should be reviewed regularly and it is important to do this if an employee’s circumstances change. Tax codes can be checked with HMRC and therefore you are expected to assign the correct tax code to each employee. You can review and download tax codes by signing up for the HMRC PAYE dashboard.

Not implementing an Auto-Enrolment pension scheme

Auto-enrolment in workplace pensions is now a legal requirement. You will need to contribute to your employees’ pensions and of course comply with the regulations and rules. Fines can be imposed if you fail to comply, so make sure you implement a robust pension scheme. There are frequent changes in thresholds and regulations so it is vital to regularly review publications from The Pensions Regulator to avoid payroll mistakes.

Missing deadlines

There are strict deadlines for payroll submissions. This includes Real-Time Information reporting and payment of taxes. To avoid penalties, we recommend careful planning and keeping meticulous and correct records.

Inaccurate record keeping

Records of employees pay must be kept accurately and large fines are applicable for failure to do so. As an employer you must maintain records of hours worked, bonuses, overtime and deductions. According to the government you must collect and keep records of:

 

  • What you pay your employees and the deductions you make
  • Reports made to HMRC
  • Payments made to HMRC
  • Employee leave and sickness absences
  • Tax code notices
  • Taxable expenses or benefits
  • Payment Giving Scheme documents including agency contract and employee authorisation forms

 

How to prevent payroll mistakes

 

  • Keep accurate and up-to-date employee records
  • Schedule payments on time
  • Track employee leave and absences
  • Keep abreast of tax regulations
  • Use reliable and the right payroll software for your business
  • Outsource your payroll

 

How can team4 help you to avoid payroll mistakes?

Without the right tools, resources and knowledge, employee payroll can be a minefield. We hope our latest blog has highlighted the most common payroll errors and will help you to avoid them. Careful planning, accurate record keeping and staying up-to-date with the latest legislation are your three keys to success. However, if you really want to avoid these payroll mistakes, the answer is to outsource your payroll to an experienced and knowledgeable team. For more information on how we can help, please get in touch. We have experts in this field to ensure you are always compliant and your employees are paid on time. Call us on +44 1825 763378 or +44 1903 442511 or email info@team4bookkeeping.co.uk